MacKay Shields Fixed Income Quarterly Outlooks – 4Q24

The fixed income outlook following the Fed rate cut presents a mixed picture. While lower rates, moderating inflation and a healthy labor market create a supportive backdrop for fixed income, current valuations require a selective approach. In our view, investors should consider diversifying their portfolios, focusing on solid structures, higher quality and durable cash flows.

This white paper features key themes such as:

• Security selection and credit quality will be crucial in navigating this environment – Multi-Sector Fixed Income
• Demand for leveraged credit has overwhelmed the supply of high yield bonds – High Yield
• Smaller-cap and mid-cap stocks may continue to outperform their large-cap peers – Convertibles