“Since inflation remains much higher than target in most jurisdictions, we believe central banks will continue their course of aggressive rate increases, which should flatten the yield curve further.” — Alexandre Morin
Key takeaways from his comment:
- As in Q1, the sell-off in the bond market was the main topic in Q2 with huge bouts of volatility
- From now on, the economy will slow and so will bond yield increases
- Reduced corporate bond exposure and duration is neutral to longer than the benchmark
Alexandre Morin, CFA
Senior Director, Portfolio Manager, Fixed Income, iAIM
