Скачать или смотреть the global view: Fixed interest allocation for 2024; Global credit - 20.12.23

Adam Whiteley, head of Global Credit at Insight Investment, outlines his thoughts on the current economic landscape and shares his perspective on the possibility of a soft landing. He does not discount the possibility of rate cuts from the US Federal Reserve in the future, signalling the expectation of three by next year. Adam affirms that giving the cuts, a reiteration of more than three would serve as a warning sign that potentially, the economy is worsening more than expected.

Adam also discusses fixed income, arguing that it is currently rediscovering its role within asset allocation, given the renewed yields available in government and corporate bonds. Focusing on credit spread valuations, he states that they sit below their long-term averages, suggesting a high probability of a soft landing. However, Adam says the combination of credit spread and government bond yield offers the alluring prospect of income and returns.

Regarding volatility, Adam looks forward to the investment opportunities that potential market instability might present. He suggests that the Ideal environment for active management arises, allowing for the exploitation of the dislocations the uncertain world presents. Adam wraps up the conversation by addressing the notion that the 60/40 portfolio might be dead, asserting that while some investors might be seeking alternative sources of diversification, the complementary nature of bonds alongside equities will continue to appeal to many.

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