Sage Advice Taxable Quarterly Market Review 3Q2020

For income-oriented investors, it has been a banner year, as yields fell in response to the global pandemic and spreads have fully recovered from March levels. With rates held in check by policy and less room for spread tightening, we expect income carry to be the primary return driver in the months to come. Returns were more muted during the third quarter and likely will be during 4Q, but we expect strong demand for yield, policy support, and higher equity volatility to keep the return trend positive into year-end.