Morgan Stanley’s Broad Markets Fixed Income Team examines how September’s synchronized central-bank tightening reshaped global fixed-income markets.
- Rising real yields, rather than inflation expectations, drove most of the selloff as major central banks raised rates.
- Credit dispersion increased, with investment grade outperforming lower-quality high yield and emerging markets proving relatively resilient.
- Higher yields have improved prospective returns, but Morgan Stanley favours selective duration, higher-quality credit and active security selection over broad market exposure.
Explore the full report for Morgan Stanley’s latest fixed-income positioning across rates, credit and securitized markets.