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Bond Fund | A summer of discontent

October 20, 2022

“After the pullback in yields at the start of the third quarter, we think the market is a little too aggressive in embracing peak rates, and the recent highs will most likely be tested again as the narrative shifts toward the adverse economic consequences of a recession, rather than the rate decisions that have brought us there. As a result, we will monitor and adjust duration accordingly.” — Alexandre Morin

 

Key takeaways from his comment:

  • Bond yields will continue to be choppy because the US Federal Reserve has signalled a terminal rate a little above 4.5% and considerable time before a pivot.
  • The Fund’s performance saw strong contributions from the federal and provincial segments.
  • The market’s recent highs will most likely be tested again as the narrative shifts toward the adverse economic consequences of recession.

Read the full article

 

 

 

Alexandre Morin, CFA
Senior Director, Portfolio Manager, Fixed Income, iAIM

 

 

Topic : Portfolio Managers

Written by iAIM

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