Latest posts by Helen Roberts (see all)

    Income Generator: Political implications for fixed income

    It’s been a big week for financial markets with the U.S. election, several central bank meetings—including the Federal Reserve (Fed), and ongoing pressure from COVID-19. The increased prospect of an orderly transfer of presidential power in the U.S. along with a politically divided U.S. Congress, ongoing central bank support, and hopes for a COVID-19 vaccine all conspired to create a surge in riskier assets and a sell-off in low-risk assets. For fixed-income investors, the short takeaway is the pre-election trends of a steeper yield curve, a weaker U.S. dollar, and tighter credit spreads reasserted themselves and are likely to continue into year-end.