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The Outlook for Bonds in a Bear Market:
Guidance for Uncertain Times
[/mk_fancy_title][mk_divider style=”thin_solid” margin_top=”0″][vc_column_text css=”.vc_custom_1663339328826{margin-bottom: 0px !important;}”]By Hunter Frey | September 2022[/vc_column_text][vc_column_text css=”.vc_custom_1663339423619{margin-bottom: 0px !important;}”]
Key Takeaways
- Seek credit investments with uncorrelated returns
- Duration management (ideally shorter duration is essential)
- Opportunistic corporate/convertible bonds with undervalued relative pricing.
- Floating Rate (Bank Loans) hedge portfolios from interest rate risk without being a tactical shift
- Legacy NARMBS are high principal investments with a strong structural support to weather market uncertainty.
- Special Situation credit investment opportunities can deliver strongly uncorrelated returns through unique positionings.
[/vc_column_text][vc_column_text css=”.vc_custom_1663339456020{margin-bottom: 0px !important;}”]Amid stagflation, the economic situation remains murky, though we see a clear path for monetary policy: raising rates. However, questions remain on the velocity of the Federal Reserve’s (Fed) quantitative tightening and the length needed for hawkish policy to tame inflation.[/vc_column_text][mk_divider style=”thin_solid” margin_top=”0″][mk_button dimension=”two” corner_style=”full_rounded” size=”medium” icon=”mk-icon-angle-right” url=”https://catalystmf.com/wp-content/uploads/sites/3/2022/09/casestudy_fixedincomeinsights_09-2022-2.pdf” target=”_blank” bg_color=”#1e73be”]Download Case Study[/mk_button][/vc_column_inner][/vc_row_inner][mk_padding_divider size=”20″][vc_raw_html]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[/vc_raw_html][/vc_column][/vc_row]
