November 06, 2023
The Fixed Income Strategic Forum
One of the challenges with investment management is balancing the short-term noise of financial markets with a longer-term assessment of the investment and economic landscape. The Fixed Income Strategic Forum is held three times a year, comprising more than 130 investment professionals, and operates to establish our medium-term views and strategic portfolio positions.
Key takeaways from the latest forum
Maybe it's different this time?
We believe contributors to market resilience, including fiscal support, artificial intelligence (AI)-led equities, and quantitative easing (QE), seem poised to fade, as does "maybe it'll be different."
Brace for impact
The long and variable lags of significant monetary, credit, and liquidity tightening are converging. It's only a matter of time.
QT - the straw that broke the (bond) market's back?
With the US Federal Reserve implementing quantitative tightening (QT) again, bond markets are asking "who will buy bonds now?" The market is disconnecting from fundamentals.
Higher for longer? Well, until something breaks?
"Higher for longer," in such an indebted system, is not celebratory. The longer rates stay higher, the more inevitable financial market dislocation.