Thornburg IM Says Pare Back Risk Broadly in Fixed Income

The transcript discusses the Federal Reserve's hawkish expectations and potential policy missteps, highlighting inflation as a political concern. It explores investment opportunities in uncertain markets, focusing on fixed income and risk management. The Fed's mandates, including price stability and employment, are examined alongside inflation expectations. The economic impact of Ukraine-Russia tensions is analyzed, particularly regarding oil pricing and financial markets. Finally, market dynamics and hedging strategies are discussed, with insights into growth value and the US consumer.

What is the significance of the Federal Reserve's third mandate regarding long-term interest rates?

How might inflation be perceived differently if it results from lower-income populations earning more?

What challenges do financial markets face in the event of a full-scale invasion of Ukraine?