April 22, 2024
It is only a quarter into the year, but we have already seen market expectations of the Fed cutting rates in 2024 shift in both magnitude and timing due to inflation remaining stubbornly high.1 Unsurprisingly, this has resulted in US Treasuries selling off. What does the rest of the year have in store for investors with a presidential election on the horizon? At PPM, we understand that markets tend to chart their own path, regardless of the Fed’s stated intentions or the outcomes of elections. Our strategies have moved up-in-quality with minimum spread give-up while retaining the ability to be opportunistic in the face of any market volatility. Tight valuations make it even more imperative that we lean into our market-tested investment philosophy of not buying the market indiscriminately, but instead relying on sector and security selection on a credit-by-credit basis to seek alpha.
(1) As of 23 April 2024.
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