As policymakers withdraw fiscal and monetary support, we believe market volatility will rise, presenting investment opportunities.

Looking across the global opportunity set, we see potential for attractive yield, though uncertainties surrounding the global recovery suggest this is a time to be cautious.

For income investors, rising interest rates have created both a challenging market environment and a better outlook for yield.

It’s hard to imagine a more challenging decade for income investors than the past 10 years. It was bookended by the great financial crisis and the surge in populist politics that led to the election of Donald Trump as U.S. President.

Markets have generally been risk-on since Donald Trump’s election as president. Yet tremendous uncertainty remains over future fiscal and monetary policies, and volatility persists at high levels.