With most central banks tightening money supply and increasing rates what to expect of global fixed income markets
- Across developed and emerging markets, inflation, central bank policy and protectionism pose the biggest potential risks to fixed income
- Valuations are tight across most developed market fixed income asset classes, but corporate fundamentals appear healthy and default rates remain low
- Given the tighter spreads in developed markets, emerging markets, particularly local debt, continue to look relatively attractive
- In 2018, active strategies may provide an efficient way of protecting against downside risk
Source: Various public sources, JP Morgan Asset Management, etc.
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