As per your request, please find below the latest edition. If this message is not displayed correctly, please click here
Fixed Income Monthly
Investment Solutions - Fixed Income

Dear Investors,

Please find below the latest edition of the Fixed Income monthly as of October 2019.

Key Highlights


Our main scenario is still that the US will avoid a recession over the next twelve months. Given the current uncertainties, however, we continue to prefer a defensive portfolio positioning towards the end of the year, with limited exposure to riskier segments such as high yield and emerging markets local currency debt.


Many think the Fed will always come running to the rescue whenever markets ring the bell. That belief is being challenged, however, as the recent FOMC minutes show members divided over the need for further easing.


Weaker fundamentals and current market conditions have not derailed overall (compressed) spreads, which remain supported by investors’ search for yield and central bank policies. BBB and BB segments are considered the sweet spot and the best way to gain exposure to decent carry to close the year.

Emerging debt:

Deterioration of global data does not bode well for EM fundamentals. However, central bank response later this year should be supportive of fixed income assets. EM corporate debt is most likely to benefit from the central bank stimulus. We remain cautious on local debt.

Issuer preferences:

Over the month, in the emerging markets investment grade segment, we added DP World in the Europe/MENA region.


Do not hesitate to contact us for additional information or for feedbacks.


With kind regards,


The Investment Solutions Fixed Income Team

Find it on My LO

All publications are available on My LO.

Discover our socials media


You are receiving this e-mail communication because you, or your relationship manager on your behalf, have requested to receive Lombard Odier’s publications and newsletters via e-mail. Should you wish to stop receiving these communications and its attachments, please contact your relationship manager. For information on Lombard Odier’s data protection policy, please refer to

United States: Neither this document nor any copy thereof may be sent to, taken into, or distributed in the United States or given to any US person. This e-mail communication, including its content and logos, may not be reproduced in whole or in part, transmitted, modified, or used for any public or commercial purpose without the prior written permission of Lombard Odier.

© 2019 Bank Lombard Odier & Co Ltd – all rights reserved. Ref. LOCH-CRM-en032019