The surprise election of Donald Trump as the next US president has resulted in an increase in volatility across global financial markets. Heading into the US election, our investment portfolios have been positioned around four key themes:
- Keep risk budgets low due to uninspiring credit valuations and expectation of higher volatility.
- Remain overweight breakeven inflation.
- Keep duration at or leaning short of benchmarks with bias to steeper yield curves.
- Focus on security selection in credit and structured asset markets.
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