Article Global Fixed Income Strategy Monthly Report | October 2026

9 October 2026
The landmark of Toronto CN Tower rising straight up alongside compact corporate skyscrapers in sunrise.

In this month’s edition:

Global macro strategy

Rising sovereign yields have refocused investor attention on Europe’s debt sustainability.  We identify where divergent fiscal paths could lead to wider sovereign spreads and repricing.

Global credit strategy

Today’s US high yield market offers an attractive level of income, in our view, without the credit quality or interest-rate risk that many investors still associate with the asset class.

Interest rate outlook

US: We maintain our neutral stance on the 10-year and continue to express constructive views via front-end positioning and curve steepeners.

Europe: We’re overweight European rates and disagree with the extent of monetary tightening priced in.

UK: We’re overweight UK rates and expect less monetary tightening compared to peers.

Currency outlook

US dollar: We’re overweight because of a more supportive backdrop

Euro: We’re underweight, based on the eurozone’s lackluster growth and unfavorable interest rate differentials.

British pound: We’re underweight given tighter interest rate differentials, relatively weak growth prospects and ongoing concerns about the UK’s fiscal credibility.

The bottom line - Global securitised debt: A new opportunity for fixed income investors

Regulatory reforms in Europe are reshaping the securitised asset class. Learn how investor perceptions may be changing and new opportunities created in global securitised markets.

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    Views and opinions are based on current market conditions and are subject to change.