Instability sparked by anti-racism protests are not set to deter investor allocations to US Treasuries, but the country's high-debt level could begin to erode its creditworthiness.
In the latest Year of the Dog prediction question, AsianInvestor questions whether the US Treasury curve will invert, and herald a potential economic recession.
Relative value managers raced to short their Treasury positions after the US Fed hinted at tapering in May, borrowing from the repo market. But demand saw hedging costs spiral.
Bond fund managers in the US debate which sectors of the market will be affected if the country suffers a credit downgrade – and which could prosper.
Portfolio manager Kenneth Buntrock believes credit is still the best place to be in US fixed income.
In the first of a series of investment review and outlook pieces, Northern Trust's chief investment strategist says the group underestimated the rebound in global real estate in 2009, but made the right call on emerging markets.