Key Q3 Takeaways:
- The global search for yield continues unabated with over $11 trillion in debt carrying negative yields.
- U.S. markets are the major beneficiary of this hunt. Long corporate bond spreads are still wider than levels two years and may still offer value.
- Central banks across the globe are marching to different drummers. The Fed is likely to hike in December but longer rates remain subdued.
- Both economic and corporate fundamentals remain weak.
- Technical factors, namely strong inflows, dominate markets. Any reversal in central bank policies may stymie the rally.
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