Central banks may stop synchronizing monetary policies in the face of uneven inflation. Temporary readjustments in intermediate tranches, but we do not expect new highs in IRR. The ECB will lower rates first than the Fed.
Within fixed income, we prefer investment-grade, low-duration corporate.
The level of defaults in US high yield could have peaked, so the better return-to-risk ratio in USD. The high yieid in EUR also has a better outlook due to lower refinancing risk.
- Tight credit spreads on both European and US bonds.
- Stabilization of yields on government bonds, both European and American.
- Improvement in the fixed income of emerging countries in "hard" currencies.