Fixed Income Perspectives — October 2024

October 4, 2024 — This presentation provides an overview of our market outlook and key themes, and it illustrates how Sage is positioned in the current environment.

Key Themes

• The Fed has shifted focus to preserving economic growth and is staying “ahead of the curve” with its 50 bps rate cut in September.
• Despite near-term volatility going into the election, the long-term backdrop remains favorable for bonds, owing to the highest yield levels in two decades, easy central bank policy globally, and downside risks coming to the fore.
• Given current valuations, we continue to have a high-quality bias in corporates, and we favor agency MBS allocations. We are also overweight duration as a risk hedge to a slowing economy, and the higher interest rate sensitivity should benefit as the FOMC cuts rates.