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Quarter-End Insights

Credit Market Outlook: Demand Rises for Higher-Yielding U.S. Dollar-Denominated Debt

Considering the historically low interest rates on sovereign bonds in developed markets, corporate bonds should perform well on a relative basis.

  • Historically low interest rates in Europe spur demand for higher-yielding U.S. dollar-denominated debt
  • Slow but steady economic growth should support corporate credit returns
  • Long-term interest rates unlikely to rise rapidly