Nigel Jenkins and Alec Small of Payden & Rygel discuss the impact of central bank rate cuts, anticipating increased volatility throughout the year. They perceive inflation as slightly more concerning, potentially leading to delayed responses from central banks. They are uncertain about inflation reaching 2%.
They explore bond investments amid expected rate cuts, focusing on emerging markets and asset-backed securities in a shifting yield environment. Their flexible approach allows them to take advantage of uncommon yields and spreads.