Five key fixed income allocation calls for Q2

Opportunity in high yield laggards

The outlook for fixed income in Q2 seems much more stable than compared to the beginning of the year, after a first quarter characterised by a healthy global consumer, accommodative central bank policy, progress on trade negotiations and a return of risk appetite.

At our latest fixed income investment strategy committee quarterly meeting, we reaffirmed our thesis for a soft economic landing, whereby economic growth will slow without triggering a recession. The cycle's...