Goldman Sachs The Markets Time to buy bonds?
20 snips
May 2, 2025 Join Lindsay Rosner, head of multi-sector investing at Goldman Sachs Asset Management, as she unpacks the current U.S. bond market landscape. She explores the impacts of the Fed's decisions on credit markets and the implications for investment strategies. Lindsay discusses the delicate balance between Treasuries and corporate bonds, especially amid geopolitical tensions. With insights on the potential recession and opportunities in investment-grade corporate bonds, she provides a compelling look at navigating the complexities of today's fixed income environment.
AI Snips
Chapters
Transcript
Episode notes
Why Treasury Yields Stayed Flat
- Treasury yields remained flat despite rate cuts due to a shift in inflation and growth expectations.
- Higher inflation and lower growth expectations offset each other, keeping yields steady around 4%.
Credit Spreads and Recession Pricing
- Credit spreads widened significantly after tariff increases but have since retraced about 70%.
- Current spreads don't fully price in a recession, suggesting potential fair value at present levels.
Add Duration in Treasuries
- Recent developments have made treasuries a more attractive investment, even amidst tariff uncertainties.
- Investors should consider adding duration in their portfolios to benefit from positive bond returns.