US high yield: accounting for outside risk
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Investment Insights
With the US economy now in its ninth year of expansion, pressure from higher interest rates, future US Federal Reserve (Fed) rate hike expectations and concerns around tariffs and trade wars have been weighing on the majority of fixed income asset classes. Year-to-date, index returns are as follows: global bond (-4%), US corporate bond (-4%) and emerging market debt (hard currency -6% and local currency -10%) in US dollar terms.