Thoughts and Bonds: Uncharted Territory – Janus Henderson
Oct 11, 2017
- While we believe that developed world central banks will act prudently as they reverse accommodative monetary policy, an unintentionally coordinated unwind could pose significant risks to bond holders.
- We expect the Fed’s tightening cycle to remain gradual, but the number of forthcoming interest rate increases to fall between market and Fed expectations.
- We do not believe this is the time to engage in aggressive portfolio positioning. We see few catalysts to drive spreads significantly tighter, but numerous threats to the downside.