The Fed is gearing up to raise interest rates, but there are some pretty big factors that will work to keep longer-term rates relatively subdued. Rick Rieder, Chief Investment Officer of Fundamental Fixed Income, looks beyond the Fed.
While the Fed has provided a clearer path for U.S. rates, the scenario of low global rates for longer is not expected to change any time soon. Negative credit rating actions on the asset class remain a concern but the risks are more fairly priced in, and the impact of a stronger dollar varies according to whether EM nations are commodity exporters or importers.
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