Global Macro Outlook: The inflation game and its implications for fixed income investors
The Fed raised its policy rate by 75 basis points in mid-June to temper surging inflation in the US. In Europe, the ECB looks set for rate increases that would end its multi-year negative interest rate policy. Will central banks succeed in keeping long-term inflation in check? And what about the growing risk of recession that could result from aggressive rate tightening?
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BobStoutjesdijkStrategist and Portfolio Manager Global Macro Fixed Income -
Martinvan VlietStrategist Global Macro Team
This webinar addresses these questions and cover the implications for global fixed income markets. Bob Stoutjesdijk, Portfolio Manager for Robeco Global Total Return Bonds, and Martin van Vliet, Strategist in Robeco’s Global Macro team, outline the global macro outlook and discuss their views on how realistic market expectations are about forthcoming rate hikes and subsequent rate cuts. They also explain why they believe that, to get fixed income duration right over time, investors need to be right on two factors: the secular inflation regime and the (economic and monetary policy) cycle.
At the end of the session, they covered:
- The inflation outlook, and the likelihood of recession
- Our views on central bank policy and what markets are pricing
- Implications of these views for fixed income asset allocation.
