Policy Uncertainty NOT about Policy outcome, good saying. But from my view, the narrow IG/HY yield could be a reflection of rate cutting expectation or searching for Yield from Fixed Income portfolio construction to have a better lock-up rate for yield harvesting, what do you think?
True, I think the hardest part to explain for the fixed income asset is the yield attribution, because they have two components ,the first one is mark to market bond price fluctuation, and the second one is fixed coupon as Income base. Sometimes, people would love to have stable income(Defense Mode) but sometimes they are chasing capital gain or bond price appreciation（Risk-on Mode）， nobody has definite answer for which one dominates than others
Policy Uncertainty NOT about Policy outcome, good saying. But from my view, the narrow IG/HY yield could be a reflection of rate cutting expectation or searching for Yield from Fixed Income portfolio construction to have a better lock-up rate for yield harvesting, what do you think?
that matters for sure also materially
True, I think the hardest part to explain for the fixed income asset is the yield attribution, because they have two components ,the first one is mark to market bond price fluctuation, and the second one is fixed coupon as Income base. Sometimes, people would love to have stable income(Defense Mode) but sometimes they are chasing capital gain or bond price appreciation（Risk-on Mode）， nobody has definite answer for which one dominates than others
great take Colin, so true!