INSIGHTS

Income-based returns are back, and investors no longer need to risk equity-type drawdowns or sacrifice liquidity to achieve their investment objectives. In our view, it is an opportune time to increase fixed income allocations.

Cathy Braganza, senior portfolio manager at BNY Investments, explains why tightening spreads with high yields create a potentially attractive risk-return balance for credit investors.

Leaders rotate in and out. No single fixed income sector consistently dominates performance over time, and strong performance in one sector rarely carries over from one year to the next. For example, U.S. Treasury bills led in 2018 and 2022 but are one of the weakest performers year-to-date.

Direct-to-client (DTC) health platforms and personalized compounded treatments may become standard practice in the rapidly evolving obesity treatment market. BNY Investments analyst Dr Oriana Beaumont believes that Novo Nordisk’s recent changes will help position them to effectively compete in this exciting and vast market.

Checkpoints is a comprehensive monthly chartbook highlighting major top-of-mind themes that could shape financial markets in the near term. In addition to the broader macroeconomic discussion, Checkpoints delivers detailed views on major asset classes, including global equities, fixed income and real assets.

Fixed income has long been regarded as a tool for capital preservation, liability hedging and predictable income streams. But in an era of elevated absolute yields and steeper yield curves, BNY Investments believes the asset class merits a fresh look. In a new report, BNY Investments argues fixed income is not just for defence, but also a genuine engine of long-term capital growth.

Experts from across BNY gathered to debate markets. Take a seat at the table, through this report, which shares key views from the discussions.

Global equities have recently hit a series of new all-time highs but lack of market breadth has been the story of the rally. Just a handful of large US tech stocks have led the pack, on the back of AI enthusiasm. Investors wanting diversification away from the “Mag 7” can consider European infrastructure, where hunger for energy is a tailwind but valuations have not yet been amplified by the expensive AI-driven power boom.