Taxable Fixed Income 2Q22 Market Review & Outlook

July 14, 2022 — Fixed income investors have been through the worst two-quarter stretch in decades and face further tightening in the coming months. We enter Q3 still cautiously positioned, but our intermediate view for core fixed income is more constructive given substantially higher yields and more attractive valuations in credit. From an asset allocation perspective, an outlook for slow growth/meaningful recession risk and peaking inflation over the next few quarters is more supportive of safe fixed income than equities.