Fixed Income Investment Strategy — July 2024
July 8, 2024 — Fixed Income Investment Strategy provides an overview of Sage’s market outlook and sector positioning.
Market Outlook
- Indicators across employment, inflation, and consumer data hint that the excess savings that shielded consumers from the impact of higher rates has run dry. We believe these trends will continue in the back half and provide latitude for the Fed to cut rates at least once in 2024.
- Our thesis remains that “the year of bond” has only been delayed, as key forward dynamics such as weakening growth, upcoming Fed cuts, and attractive yield levels are all supportive.
- Our key positioning themes include modestly long duration and an outsized MBS allocation for attractive yield and to hedge credit risks.
Featured Insights
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Fixed Income Perspectives — June 2024
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