Fixed Income Perspectives — 2025 Outlook
January 13, 2025 — This presentation provides an overview of our market outlook and key themes, and it illustrates how Sage is positioned in the current environment.
Fixed Income Themes
- Rates will be contained by further Fed easing, weaker growth, and a slow grind down in inflation. Yield carry will drive returns, but duration will be a hedge against macro uncertainty.
- Spreads will remain rangebound given demand for yield and strong fundamentals. Security selection and a wider opportunity set will be key to excess returns.
- Fed pricing suggests yields are fully priced; extending out of cash and into coupon bonds is prudent as curves steepen.
Featured Insights
Fixed Income
Video: Sage’s 2025 Fixed Income Outlook
January 13, 2025 -- Sage’s Chief Investment Strategist Rob Williams discusses key market drivers for fixed income in 2025 and how Sage is positioned in the current environment.
Fixed Income
High Rates, Tight Supply: Housing’s 2025 Balancing Act
January 13, 2025 -- The US housing market faces a delicate balancing act in 2025, influenced by lingering effects of the pandemic and persistently high mortgage rates.
Fixed Income
The Starting Line for the US Yield Curve
January 6, 2025 -- Two key components drive the shape of the yield curve: expectations for the short-term interest rate and expectations for the term premium. The market...