Fixed Income Market Views 2024

Mark Dowding, BlueBay Chief Investment Officer and six of our leading experts, from across the key sub-asset classes within Fixed Income, look at the economic influences that are shaping markets and discuss the opportunities that we think will deliver alpha in 2024.

2024 Market View: Fixed Income

Mark Dowding, BlueBay Chief Investment Officer shares his thoughts on 2023 and the year ahead:

  • This is a great time to be a fixed income investor as value has come back to the asset class.
  • Central banks and market participants have done a poor job of predicting inflation and economic growth and there is still a wide dispersion in macro-economic expectations.
  • By this time next year, we’re likely to see yields lower and we should see interest rates coming down in many developed markets.
  • Volatility is set to continue in the markets in which we’re investing which presents active investors like us with a rich landscape of opportunities.

 

2024 Market View: Financials

Marc Stacey, BlueBay Senior Portfolio Manager, shares his thoughts on 2023 and the year ahead:

  • The fundamental resilience of banks is not being reflected in valuations and we are confident this should correct over time.
  • Bank earnings within the higher rate environment should go some way in shielding any deterioration in asset quality. Capital levels remain close to all-time highs while the stock of NPL’s are close to the lows.
  • The higher yields mean investors are able to harvest equity type returns from highly rated single A issuers without compromising on liquidity or asset quality.

 

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