Bond Markets Theme Focus

UBS recommends investors lock in yields by adding quality investment-grade corporate bonds, particularly in the short- to medium-tenor segment. The strategy emphasizes 'Quality Income', 'Selectivity', and 'Cross-border' diversification to capture carry and rolldown gains amid potential yield declines.

Key Takeaways

• 1.Investors should lock in yields by adding to quality bonds in the short- and medium-maturity segments as market rate-hike expectations are likely overblown.
• 2.Quality Income theme focuses on investment-grade corporate bonds with medium tenors to capture solid carry yields and potential curve-rolldown gains.
• 3.Selectivity is critical given tight spreads; investors should focus on high-quality corporate bonds in segments like energy, utilities, and financials.

Table of Contents

• Overview of our Messages in Focus
• More recommendations and related research
• Bond investment themes
• Quality income
• Selectivity matters
• Cross-border bonds
• Appendix
• UBS CIO risk views
• UBS CIO valuation views
• Required Disclosures
• Risk Information

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