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Despite headlines of fiscal risks and political unrest, Colombia, Chile, and Peru are defying expectations with their appreciating currencies, credible policies, and strong economic fundamentals.

Just as tectonic plate movements can trigger earthquakes and reshape landscapes, financial tectonics shifts are being driven by three forces that are compelling investors to rethink their approach to bond markets: the fragmentation of the global economy, fiscal indiscipline, and the tsunami of passive investing.

With inflation and interest rates pushing up rather than down and fast-changing policies and scenarios in the US, UBP’s fixed-income experts explore how investors can put together a flexible and resilient bond portfolio in an approach favouring the long term.

The year started with volatility in rates, as the 10-year Treasury yield oscillates amid shifting market dynamics.

Despite recent volatility, emerging markets (EMs) continue to hold significant potential for investors. The current global trends and market conditions present several tailwinds that can drive growth and create opportunities in EM fixed income investments. Here, we explore these tailwinds and discuss the investment implications for the second half of 2024.

We believe that we are at a shift in regime for fixed-income markets as central banks prepare the ground for potential rate cuts following the most aggressive tightening cycle since the 1970s.

Union Bancaire Privée, UBP SA (UBP) announced today that it has further expanded its fixed income offering with the launch, in December 2022, of a new high-income strategy.

This year, we have held – and continue to hold – a positive bias on credit markets. This has been driven by our macro scenario of a robust and sustained global growth recovery as economies normalise following the vaccine rollout, coupled with the significant policy support coming from both monetary and fiscal authorities which should allow global growth to exceed its pre-Covid trend.

Mohammed Kazmi, Portfolio Manager & Macro-Strategist Global and Absolute Return Fixed Income at UBP, recently participated in an Asset TV Masterclass discussing which areas of the bond market offer opportunities to investors.