Annual & Mid-year Outlook | Fixed Income

Where are the Relative Yield Opportunities?

_{Posted on Dec 16, 2020}

Key Takeaways

Global central banks have cut rates swiftly with the onset of the COVID-19 crisis and are likely to keep rates at present lows deep into the coming years of recovery. With a period of structurally low rates upon us, Citi analysts have gone further underweight in global fixed income.
Citi analysts see selective opportunities in Emerging Market debt and US high yield bonds which could continue to be further supported by a recovery from the COVID-19 shock. However, allocation is kept neutral to avoid overlapping similar risks in equities.

_{By Citi Global Wealth Investments | Apr 12, 2024}

Q2 2024 | At a glance

This is an unusually positive time for markets. Inflation is slowing while corporate profits are rebounding. Global equity markets, as reflected by the MSCI World Index, are up around 10% year-to-date. Earnings have remained resilient in the face of policy action and we believe there is a broadening of equity performance, and it is spreading beyond US shores.

_{By Citi Global Wealth Investments | Feb 20, 2024}

Wealth Outlook 2024: Economic Security Opportunities

Recent geopolitical events in Europe and the Middle East have brought more attention to the theme of “economic security”. With 2024 being a major year for elections around the world, one might wonder, how does one invest in this particular theme?

Wealth Insights Economy Annual & Mid-year Outlook Asset Allocation Equities

_{By Citi Global Wealth Investments | Dec 8, 2023}

Wealth Outlook 2024 | At a glance

Though a global economic recovery is still only on the horizon, we expect markets to start focusing on longer-term market opportunities. This calls for dynamic portfolios that are ready to pivot as a sequence of potential opportunities unfolds, including in Asia. This includes quality investments amid the present uncertainty and exposure to the sources of long-term growth as present uncertainties resolve.

Annual & Mid-year Outlook Economy Asset Allocation Equities Fixed Income

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(MLP’s) - Energy Related MLPs May Exhibit High Volatility. While not historically very volatile, in certain market environments Energy Related MLPS may exhibit high volatility.

Changes in Regulatory or Tax Treatment of Energy Related MLPs. If the IRS changes the current tax treatment of the master limited partnerships included in the Basket of Energy Related MLPs thereby subjecting them to higher rates of taxation, or if other regulatory authorities enact regulations which negatively affect the ability of the master limited partnerships to generate income or distribute dividends to holders of common units, the return on the Notes, if any, could be dramatically reduced. Investment in a basket of Energy Related MLPs may expose the investor to concentration risk due to industry, geographical, political, and regulatory concentration.

Mortgage-backed securities ("MBS"), which include collateralized mortgage obligations ("CMOs"), also referred to as real estate mortgage investment conduits ("REMICs"), may not be suitable for all investors. There is the possibility of early return of principal due to mortgage prepayments, which can reduce expected yield and result in reinvestment risk. Conversely, return of principal may be slower than initial prepayment speed assumptions, extending the average life of the security up to its listed maturity date (also referred to as extension risk).

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Diversification does not guarantee a profit or protect against loss. Different asset classes present different risks.

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MARKET SPECIFIC DISCLOSURES

Market Specific Disclosures

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Before making any investment, each investor must obtain the investment offering materials, which include a description of the risks, fees and expenses and the performance history, if any, which may be considered in connection with making
an investment decision. Interested investors should seek the advice of their financial adviser about the issues discussed herein as appropriate. Should investors choose not to seek such advice, they should carefully consider the risks associated
with the investment and make a determination based upon the investor’s own particular circumstances, that the investment is consistent with the investor’s investment objectives and assess whether the investment product is suitable for
themselves. Although information in this document has been obtained from sources believed to be reliable, CSL does not guarantee its accuracy or completeness and accept no liability for any direct or consequential losses arising from Its use.

CSL does not provide discretionary portfolio management services.

UAE: This document is distributed in UAE by Citibank, N.A. UAE. Citibank N.A. UAE is licensed by UAE Securities and Commodities Authority (“SCA”) to undertake the financial activity as Promoter under license number 602003.

Citibank N.A. UAE is registered with Central Bank of UAE under license numbers BSD/504/83 for Al Wasl Branch Dubai, 13/184/2019 for Mall of the Emirates Branch Dubai, BSD/2819/9 for Sharjah Branch, and BSD/692/83 for Abu Dhabi Branch.

This is not an official statement of Citigroup Inc. and may not reflect all of your investments with or made through Citibank. For an accurate record of your accounts and transactions, please consult your official statement. Before making any investment, each investor must obtain the investment offering materials, which include a description of the risks, fees and expenses and the performance history, if any, which may be considered in connection with making an investment decision. Each investor should carefully consider the risks associated with the investment and make a determination based upon the investor’s own particular circumstances, that the investment is consistent with the investor’s investment objectives.
At any time, Citigroup companies may compensate affiliates and their representatives for providing products and services to clients.

United Kingdom: This document is distributed in the U.K. by Citibank UK Limited and in Jersey by Citibank N.A., Jersey Branch.

Citibank UK Limited is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Our firm’s Financial Services Register number is 805574. Citibank UK Limited
is a company limited by shares registered in England and Wales with registered address at Citigroup Centre, Canada Square, Canary Wharf, London E14 5LB, Companies House Registration No. 11283101.

Citibank N.A., Jersey Branch is regulated by the Jersey Financial Services Commission. Citi International Personal Bank is registered in Jersey as a business name of Citibank N.A. The address of Citibank N.A., Jersey Branch is P.O. Box 104, 38 Esplanade, St Helier, Jersey JE4 8QB. Citibank N.A. is incorporated with limited liability in the USA. Head office: 399 Park Avenue, New York, NY 10043, USA.

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