Steeper yield Curve
Currency diversification
We expect steeper yield curves and persistent rate volatility. This environment favours tactical diversification* across developed and emerging markets, with a flexible duration strategy remaining critical.
As global capital reallocates, a weaker dollar strengthens the case for undervalued and emerging market currencies. For non-dollar investors, hedging currency risk is increasingly important, offering a way to mitigate volatility while capturing opportunities in select foreign exchange markets.
Quality credit
for income
We continue to prioritise high-quality credit, particularly Euro Investment Grade. Financials and subordinated credit remain central to our income strategy.
