Bond Outlook November 22nd

To what do a fixed-income investor’s thoughts turn, when credit risk is so unattractive? The answer is “currency risk”. We have clients who are cautiously diversifying into emerging currencies to seek better yields. We are also seeing purchases of CHF and JPY in a straight currency play.

Last week we considered the fundamental trends for six major currencies (USD, EUR, JPY, RMB, CHF, GBP), a theme worthy of further consideration.