Addressing the risk of higher core rates: a defensive strategy does not preclude high-yielding bond exposure
smartmoney.oneAhead of the key end-of-summer event for global financial markets - the Federal Reserve symposium in Jackson Hole – we have summed up our expectations for market trends in the coming months, alongside strategy ideas in the bond market.In August, development of the global economy was generally disappointing. The accelerated spread of the Delta strain of Covid-19 in the US and Asia has led to slower recovery in demand and manufacturing activity.US GDP growth in the 3rd quarter will be significantly lower than its level recorded in Q2 (6.6% QoQ).
Notably, a slowdown in global growth is likely to be accompanied by a decline in the inflow of monetary liquidity into the US economy, in view of the forthcoming reduction in asset purchases by the.