Posted: Saturday, January 19, 2019 - 09:05 EST
- With tightened financial conditions and a synchronized global growth slowdown, both the Fed and Bank of Canada will be cautious in raising rates this year.
- In the U.S., quantitative tightening may continue to exert upward pressure on the long end of the curve.
- As valuations increasingly become attractive, and we move late in the cycle, high-quality investment grade credits should continue to provide a good hedge against higher interest rates and ongoing global economic uncertainties.
- Despite the back up in rates, Canadian fixed income posted modest positive returns in 2018.
- Active management will become increasingly necessary to take advantage of fixed income market opportunities.
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