After many years of abnormalcy in the fixed income market, we are finally starting to see some normalcy returning to it. However, that doesn't mean there are no problems with government bonds. The US debt load has risen to 35 trillion post the pandemic, consequences of the US election are uncertain, and military spending will go up if tensions continue to rise around the world. On the other hand, the world economy is doing well, companies are becoming better run, and inflation expectations are generally falling. Against this backdrop, investors could look to investment grade corporate bonds in the fixed income space.
This episode is presented by Mark Matthews, Head of Research Asia at Julius Baer.
