Q1 2024 Active Insights: Inflation – out of the woods yet?
Since the start of the year, investors have well and truly adopted the US soft-landing narrative – believing that inflation can be tamed without severely impacting the prospects for US growth. While, as a house, we have pared back our expectations for a US recession until later in the year, the Active Fixed Income team continues to question whether inflation really is yesterday’s problem?
The more we see the market acting as if inflation were yesterday’s problem, the less comfortable we are.
The team also looks at the potential need for greater portfolio diversification and wonders how much positive news on the inflation front is baked into the European corporate bond market? Finally, the US fixed income team gives us an insight into the world of securitised products.