The View Beyond: Higher yields, risk or opportunity?
Notes de l’épisode
With the US 10-year treasury yield recently crossing the 5% threshold and the Federal Reserve maintaining a hawkish stance, bond investors are facing heightened volatility and a rapidly shifting landscape. Are higher yields a warning sign of greater risk, or do they present new opportunities for portfolio construction?
In this episode, Rishabh Saksena, Co-Head of Global Asset Class Specialists at Julius Baer, is joined by Dario Messi, Head of Fixed Income Research. Together, they dissect the drivers behind the recent surge in yields, the implications of monetary policy repricing, and the nuanced impact of a more hawkish Fed across the yield curve. The conversation covers duration preferences, the outlook for inflation and credit, the appeal of US investment-grade bonds, and the effects of increased bond issuance from sectors such as hyperscalers.
This episode was recorded on September 28, 2026.
- (00:00) - Introduction
- (01:22) - What’s driving the move in yields?
- (02:42) - Investor concerns and opportunities in fixed income
- (03:45) - Why a hawkish Fed can support parts of the bond market
- (05:26) - Outlook for the Fed and interest rates into 2027
- (06:23) - Duration preferences and the case for intermediate maturities
- (08:35) - Appetite for longer-dated bonds and portfolio construction trends
- (10:07) - Implications of a sustained 5%+ US treasury yield
- (11:48) - Inflation risks and expectations for 2027
- (13:00) - Is corporate credit still attractive at current valuations?
- (14:24) - Impact of increased bond issuance from hyperscalers
- (15:48) - Key takeaways for fixed income investors
- (16:53) - Closing remarks
- (17:34) - Legal information
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