Despite heightened geopolitical tensions, persistent inflation concerns and ongoing uncertainty around US monetary policy, fixed income continues to offer compelling risk adjusted return potential heading into the second half of the year, says Payden & Rygel managing director and portfolio manager, Eric Souders.
Markets have been forced to navigate a much more complex environment than many expected at the start of the year, Souders says.
“The US economy remains remarkably resilient, supported by strong consumer spending and what appears to be a generational upswing in investment, driven by AI infrastructure and power demand.”
While inflation has moderated from peak levels, he expects it to remain sticky and volatile in the near term.
The views expressed are her own and do not consider the circumstances of any investor.
