Fixed Income (December)
- The Federal Reserve cut its policy rate by another 0.25% in December. Despite the rate cut, fixed income yields rose on the long end of the curve and put negative pressure on the market.
- Widening credit spreads in the risk off environment led to modest negative returns within high yield
during December, but the sector remains a standout year-to-date. - Foreign bonds fell in the month. A stronger U.S. dollar was the primary culprit of the weak result.
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