Corporate Bonds

The combination of dollar weakness and rising US yields suggests global investors are questioning the safe-haven status of US Treasuries.

Our Portfolio Allocation Summary for April 2025.

The March employment report showed strong job growth, but the labor market remains in a fragile state and the demand shock from tariffs could be the catalyst that tips it over the edge into recession. 

Corporate bond spreads are tight around the globe and do not adequately compensate for the risk of a deterioration in credit quality. We examine the global corporate credit landscape to identify which markets are best equipped to perform in the current environment.
 

With economic headwinds building and fiscal dynamics shifting, bond markets are at a turning point. Our latest note outlines why German bund yields are set to decline and why UK gilts are poised to outperform — and how to position accordingly.

In this Second Quarter Strategy Outlook, we explore the major trends that are set to drive financial markets for the rest of 2025 and beyond.

An analysis of historical data shows that Ba-rated bonds outperform other corporate credit tiers in the long-run on a risk-adjusted basis. That said, today’s fragile macro environment warrants a more cautious allocation. 

A falling stock market and sticky bond yields represent the worst of both worlds for investors. We interrogate why bond yields haven’t dropped more given the large selloff seen in equities.

Our Portfolio Allocation Summary for March 2025.