Citi analysts see potential opportunities in US high yield (HY) corporates, and in particular – HY corporate bonds that were once investment-grade but have since been downgraded.Continue Reading
Asset Allocation Equities Bonds Coronavirus COVID-19
Are Yields Too Low for the Post COVID-19 World?
Following a confirmed COVID-19 treatment, global yields may rise. Equities may also rally modestly on a post COVID-19 recovery, but performance dispersion may see winning and losing sectors rotate.Continue Reading
Fixed Income – Staying Selective
Within global fixed income, Citi analysts are overweight US bonds such as Treasuries and Investment Grade debt, and USD Emerging Market Debt. Global High Yield remains neutral.Continue Reading
2020 Mid Year Outlook Bonds
Positioning Amid Lower Interest Rates
With central banks rolling out unprecedented levels of monetary easing, interest rates are expected to stay lower for longer. Cyclical-oriented sectors in US Investment Grade corporates may benefit in a new economic cycle, while Emerging Market Debt offer compelling valuations.Continue Reading
Europe Equities Bonds
ECB Expanded its Stimulus – What are the Implications?
The ECB boosted its PEPP and fully endorsed the recently proposed EU Recovery Fund. In Citi’s view, sentiment towards European assets is expected to improve.Continue Reading
Fed Support for Fixed Income Eases Liquidity Concerns
The US Federal Reserve’s purchases of corporate bond ETFs alleviates liquidity concerns that created sharp price declines during March-April sell-off.Continue Reading