Corporate Bonds
In this Strategy Outlook, we present the major investment themes and views we see playing out for the rest of 2023 and beyond.
Top-down measures of nonfinancial corporate sector balance sheet health have been flattered in recent quarters by inaccurate data on interest expense. After correcting for the inaccurate data, we see that our best measures of corporate balance sheet health show a persistent steady deterioration.
In this report, we review our European fixed income strategy recommendations ahead of tomorrow’s critical ECB meeting
Our Portfolio Allocation Summary for September 2023.
A global recession continues to be likely over the next 12 months. The impact of tighter monetary policy is slowly being felt. Government bonds look increasingly attractive as a safe haven.
A global portfolio is likely to return only 5.3% a year over the next decade, compared to 6.7% in the past. Investors either need to lower their return expectations, or take more risk. Our total return methodology remains consistent with previous editions, with changes limited to the Alternatives section.
Our Portfolio Allocation Summary for August 2023.