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By Chris IGGO, Chair of AXA IM Investment Institute and CIO, AXA IM Core
Central bank rates are converging at their average lowest levels for a few years. The year ahead could be one of stability, which would be supportive for carry-based fixed income strategies. Higher credit returns should follow, but investors can also lock in decent yields and improve their average credit quality exposure. More substantial credit shocks are possible, but as long as nominal growth remains robust, the 'buy on dips' mentality is likely to prevail.
Come together – Globally, interest rates are converging. The average difference between policy rates of major central banks peaked in 2023 and has been moving lower since. It should continue to...
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