- Managers within SEI’s U.S. fixed-income strategies responded to a survey regarding economic fundamentals and high-level market expectations for the 2018 calendar year.
- All respondents expect interest rates across the globe to either rise or stay the same in 2018. Even those with the lowest projections anticipate that short- and long-term U.S. Treasury rates will climb from their year-end 2017 levels.
- Most managers point to political headwinds as the greatest potential risk across countries and regions in the coming year.
At the end of last year, we polled 15 sub-advisors within our U.S. investment-grade fixed-income strategies about economic fundamentals and high-level market expectations for the 2018 calendar year. These managers, who have global footprints and assets under management ranging from just over $100 billion to more than $1 trillion, all responded similarly to questions regarding interest-rate movements and sources of risk in the coming year. Their answers diverged when it came to other topics, such as inflation, economic growth and market movements.