For the second half of 2020, we hold an optimistic outlook for fixed income returns. We believe policy support will keep yields in check, and demand for income and attractive valuations in spread sectors will drive further upside. Economic activity is rebounding off historic lows, and concerns are building over a second wave of COVID-19 infections. Our thesis for the third quarter is a continued recovery in data, but with less surprises to the upside, and a continued commitment from policymakers to stay accommodative throughout 2020. This should keep the tone generally positive for risk markets, with equities more volatile, but not collapsing during bouts of negative news. Spreads should remain well supported by the Fed’s purchases and a lack of alternatives in a low-yield world.

Our cash management investment strategies take into account a client’s liquidity concerns, tax issues, and operating requirements. We strive for absolute investment returns over relative market performance.