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Turning market noise into investment harmony

Active management decisions in today’s fixed income market

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Oct 25, 2024

2024 has been filled with economic noise that may feel unsettling to some, but it’s exactly the kind of market that excites active investors. As the year winds down, Andrzej Skiba, Head of BlueBay U.S. Fixed Income, reflects on key developments, highlights how we’ve positioned clients for success, and explores the risks, opportunities, and role of active fixed income in the year ahead.

Key takeaways:

  • 2024 has been a year of heightened rates volatility in which we saw acute reactions to perceived changes in the future path of interest rates and exaggerated price movements - both positive and negative.

  • Adapting to evolving market conditions is key to unlocking alpha; we benefit from flexibility in our process and philosophy, which empowers us to target alpha across various sources.

  • Trump’s win in November reveals opportunities to add spread duration in sectors benefiting from deregulation and domestic protectionism.

  • In the current environment, it is important for investment managers to be flexible while acting with conviction to benefit from opportunities that may arise.

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In Canada, this material is provided by RBC GAM Inc. (including PH&N Institutional) and/or RBC Indigo, each of which is regulated by each provincial and territorial securities commission with which it is registered. In the United States, this material is provided by RBC GAM-US, a federally registered investment adviser. In Europe this material is provided by RBC GAM-UK, which is authorised and regulated by the UK Financial Conduct Authority. In Asia, this material is provided by RBC GAM-Asia, which is registered with the Securities and Futures Commission (SFC) in Hong Kong.

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