MacKay Shields Fixed Income Quarterly Outlooks – 3Q25

In MacKay Shields’ latest outlooks, the investment teams explore key trends shaping the fixed income market and examine the evolving risk and return dynamics in global fixed income.

Featuring expert insights on:

• Macroeconomic Outlook – “Back from the Brink — Trade de-escalation supports modest growth, but inflation risks, housing headwinds, and weaker labor supply may limit momentum and delay Fed easing.”
• Global Fixed Income Outlook – “While yields remain compelling, tight credit spreads and macro uncertainty call for a focus on high-quality assets, active security selection, and careful duration management.”
• High Yield Outlook – “High yield markets continue to benefit from strong fundamentals and resilient demand, despite tighter spreads and limited new issuance. We believe attractive yields and improving credit quality support a constructive outlook.”
• Convertibles Outlook – “Convertible bonds continue to demonstrate their asymmetric return potential, offering equity-like upside with downside resilience amid a strong issuance environment and disciplined positioning.”