Bloomberg Surveillance · Monday, July 20, 2026
The primary driver of returns in fixed income is expected to be the carry or coupon, rather than significant capital appreciation. While equity markets might offer higher returns, fixed income is seen as delivering steady yields, with expectations of 6-8% returns. This outlook suggests investors are prioritizing income generation over speculative growth.
“So I think both. When you think about fixed income in general, the majority of your returns come from that carry or that couponh So the carry is the biggest predictor of what your future returns are. And you're looking at these yields, right now, I mean my expectation would be fixed income delivers the yields. I'm not looking for massive you know, capital appreciation from it, but you pick up your carry that's that's maybe that's not attractive if the equity market goes up thirty percent every year, but you know, six seven, eight percent returns in fixed income are I think, well.”
“Exactly, Paul Mike dumb. Math is you make a coupon five and six percent and you drop two percent on top of that total return, and your way aboutnomenal.”