Credit markets are supported by the stable macroeconomic backdrop and improved financial conditions following interest rate cuts.
Local bond rates in select emerging markets may present opportunities given expectations of a weaker USD and investor appetite for diversification.
Net inflows into fixed income ETFs are proceeding at record pace, with adoption spanning investor classes.
Over the last couple of years, bonds have been anything but boring. The low-income environment that the world lived through in the aftermath of the global financial crisis has been completely turned on its head.
First a pandemic, then supply chain disruption, and then the outbreak of war in Europe. Each of these factors contributed to the highest level of inflation experienced in a generation, and a cycle of aggressive interest rate hikes from almost all major central banks.
Against this backdrop, fixed income has defied its staid reputation by experiencing almost unprecedented volatility, and now presents rare opportunities. Put simply, the “income” in “fixed income” is back.
As we head into 2025, we believe the case for the asset class is the strongest it has been for years, with the potential peak in interest rates offering the opportunity to lock in a higher level of income for the years to come.
As we step forward into this new environment, it gives us great pleasure to outline what this means across a broad range of fixed income asset classes. Please read on for further insights and analysis.
Discover Invesco's diverse fixed income strategies, combining global expertise and innovative solutions to meet your investment needs.
Discover our Global Fixed Income Strategy Monthly Report, we offer an outlook for interest rates and currencies and look at which fixed income assets are favoured across a range of market environments.
To optimise income yield and growth, we look for opportunities that are supported by long-term structural demand drivers, or where active management can enhance cash flows.
While 2025 brought uncertainty, the aftermath also brings new opportunities for the year ahead. Our experts discuss the potential this new landscape may bring in 2026.
