The fixed-income conversation focuses on the trends of 2026, with the expectation that momentum from the previous year's strong performance will continue due to inflation moving towards its target and potential for rate cuts. Scott DiMaggio from Alliance Bernstein joins the conversation, offering insights on the Federal Reserve's path, suggesting two to three cuts this year, influenced by the jobs market. Both speakers agree that cash will become less valuable, supporting fixed income flows and valuations. They explore credit market dynamics, noting tight spreads and recent issuance, while favoring securitized over corporate credit. Additionally, they address housing affordability, the potential impact of policies, and the importance of addressing the supply side. DiMaggio highlights the upcoming midterm elections, Japan's fiscal borrowing, and the weaker dollar as key factors to monitor.
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