INSIGHTS

A sharp repricing has pushed 10-year U.S. Treasury yields to around 5.30% following the Federal Reserve's (Fed) 25 basis point (bp) hike in September, with real yields doing the heavy lifting.

For investors’ next marginal fixed income allocation, we believe high yield bonds could be worth considering against private credit in the current environment.

Value equities have historically shown resiliency during higher inflationary periods versus their growth counterparts. With inflation remaining elevated, we believe that value opportunities continue to be a compelling option for portfolio diversification and potential stability.

The U.S. Federal Reserve’s (Fed) 25 basis point (bp) rate hike on September 16 marks the beginning of its effort to bring inflation back toward its 2% target. Under Chair Warsh, the Fed’s actions are now aligning with its hawkish rhetoric.

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.

The U.S.’ extraction of President Maduro from Caracas on January 4 could alter the trajectory of geopolitics in the Americas.

Value equities have historically shown resiliency during higher inflationary periods versus their growth counterparts.

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