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Language Notification

Please be advised that future verbal and written communications from the bank may be in English only. These communications may include, but are not limited to, account agreements, statements and disclosures, changes in terms or fees; or any servicing of your account.

Por favor, tenga en cuenta que es posible que las comunicaciones futuras del banco, ya sean verbales o escritas, sean únicamente en inglés. Estas comunicaciones podrían incluir, entre otras, contratos de cuentas, estados de cuenta y divulgaciones, así como cambios en términos o cargos o cualquier tipo de servicio para su cuenta.

Informamos que as futuras comunicações do banco, verbais e escritas, podem estar disponíveis apenas em inglês. Essas comunicações podem incluir, entre outras, acordos de conta, extratos de conta e divulgações, alterações aos termos ou tarifas, ou qualquer tipo de serviço pertinente à sua conta.

仅此通知,本行即日起发出的口头及书面通信可能将只提供英文版本。这些通信可能包括但不限于账户协议,账单和通知,条款或费用变更;或任何为您账户提供的服务。

Please be advised that future verbal and written communications from the bank may be in English only. These communications may include, but are not limited to, account agreements, statements and disclosures, changes in terms or fees; or any servicing of your account.

Por favor, tenga en cuenta que es posible que las comunicaciones futuras del banco, ya sean verbales o escritas, sean únicamente en inglés. Estas comunicaciones podrían incluir, entre otras, contratos de cuentas, estados de cuenta y divulgaciones, así como cambios en términos o cargos o cualquier tipo de servicio para su cuenta.

Informamos que as futuras comunicações do banco, verbais e escritas, podem estar disponíveis apenas em inglês. Essas comunicações podem incluir, entre outras, acordos de conta, extratos de conta e divulgações, alterações aos termos ou tarifas, ou qualquer tipo de serviço pertinente à sua conta.

仅此通知,本行即日起发出的口头及书面通信可能将只提供英文版本。这些通信可能包括但不限于账户协议,账单和通知,条款或费用变更;或任何为您账户提供的服务。

singing-the-same-song

Perspectives

Bond Market Monthly | The song remains the same

Kris Xippolitos

By Kris Xippolitos

Head - Fixed Income Strategy

October 16, 2020Posted InFixed Income

  • For fixed income investors, the environment is not getting easier. Developed sovereign bond yields have been suppressed by a historical economic collapse and delays over the fiscal stimulus to defend against it. US Treasury yields have risen of late, but the global bond market still only yields 1.1% (including high yield and emerging market debt). Credit spreads appear unimpressed, despite the volatility in equity markets. Indeed, the Federal Reserve and European Central Bank purchases of corporate bonds has kept demand for corporates elevated and spreads well supported.
  • The upcoming Presidential election (Nov 3) has begun to add an additional layer of market uncertainty. Upcoming debates and the use of social media may keep market volatility temporarily elevated over the coming months. Some national polls suggest Joe Biden may win, though polls have been wrong in the past. Fixed income investors will have to contend with continued uncertainties over the size and timing of fiscal stimulus, possible changes in corporate tax rates, qualified dividends and persistent US/China trade friction.
  • Despite the risks, our constructive economic outlook over the next 12-18 months remains intact. Alongside improving macro data, news of a credible Covid-19 vaccine is likely to push 10-year Treasury yields back towards 1.25%. As such, we prefer credit risk to interest rate risk when constructing fixed income portfolios. With the Fed less influenced by the prospects of higher inflation, lower for longer policy rates keeps us positioned for a steeper US yield curve.
  • Risks remain, especially as it pertains to Covid-19 and the coming winter months. Therefore, core portfolios consisting of high quality corporates or municipal bonds (for US investors) remain essential. However, with real rates deep in negative territory, US and European preferred securities, high yield bonds and areas within structured credit are considered attractive portfolio compliments.
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