Citi Wealth Insights

Citi analysts view US Investment Grade Corporate Bonds as one of the better value opportunities in global fixed income.

In this update, Citi analysts discuss the emerging market debt landscape, its challenges and our expectations for the asset class in the new year.

Citi analysts believe that selective regional markets (US Investment Grade, US High Yield and Emerging Market Debt) still offer value.

The spread between 3- and 5-year yields fell to -0.7 bps on Monday, dropping below zero for the first time in more than a decade.

To take advantage of the growing opportunity created by higher US interest rates, Citi analysts have made slight adjustments to their weighting on bonds and equities.

Short-term US rates are expected to rise, while long-term rates remain subjected to both bullish and bearish factors