Kate Lin: Welcome to Morningstar. Investors have been pouring money into investment grade corporate bonds, enticed by the most attractive yields seen in a decade.
However, some of the hopes of capturing better total returns from fixed income are facing a test, as developed economies are tipping into economic slowdowns.
Joining me today to make sense of the global credit market and how the Fed’s actions impact them is Adam Whiteley. He’s the head of global credit at Insight Investment for BNY Mellon Investment Management.
Hi, Adam. The market has a view that recent economic data has given the Fed plenty of room to have interest rates steady through this year and into the next. What is your view?
Adam Whiteley: We think that the Federal Reserve is now essentially done with its policy rate tightening, but we wouldn’t expect that there would be easing policy early in next year. And that’s because there are still concerns around the core elements of inflation where we strip away the…