Bloomberg Surveillance · Wednesday, August 12, 2026
While equities remain overweight, the risk-reward for fixed income is improving due to higher yields, which offer a buffer against potential interest rate increases. Even with a 50 basis point rise in yields, a one-year forward basis could still result in a positive total return for Treasury investors.
“We're still overweight equities of all, but we would be leaning into the bonds here as well for fixed income investors.”
“And I think maybe just as a starting point, you know, with that higher income or that carrier that we're seeing really provides quite a buffer for investors.”
“So in our mind, the risk reward is actually improving for fixed income here.”