Improving Valuations

The flattening U.S. yield curve is in the spotlight. Is the curve set to invert – and foreshadow a recession as it often has in the past? We explain why comparisons with past flattening episodes may be a case of apples and oranges. And we argue that when it comes to flattening, investors are focused on the wrong curve: It is the flattening in return expectations between low- and high-risk assets that really matters.