Fixed Income 2024 Outlook | A Manager Conversation with Ninepoint’s Etienne Bordeleau-Labrecque

In this 2024 Fixed Income Market Outlook, Etienne provides an analysis of the fastest and largest rate hiking cycle since the 1980s and a summary of market behavior in 2023. The rate hikes were felt through low building starts, banks tightening lending standards and reducing credit availability, the weakest loan growth since the Great Financial Crisis, manufacturing starts in contraction for 14 months, and across many other avenues.

Etienne provides evidence for the fact that we’ve entered a new credit cycle and gives a brief comparison between the landscape in Canada and the US. He also provides the Ninepoint Fixed Income Team’s hypothesis on a recession in 2024 and gives some reasons as to why we haven’t entered one yet, such as increased government spending and the use of personal credit cards to sustain spending patterns. He shares that these trends cannot continue due to interest expenses finally hitting, banks tightening lending standards, and government spending growth being challenged in upcoming US elections.

Overall, Etienne states that leading indicators such as the US Conference Board Leading Index, the slope of the yield curve, and employment growth point to an economic downturn, and the question is when and how hard, as opposed to “if”. He comments on competing views around the world regarding a soft landing vs. recession and ends the outlook with an analysis of the positioning of the Ninepoint Fixed Income Fund Portfolio. Watch the full presentation below.

Any views or expressions of an opinion is subjective to the speaker and does not constitute a recommendation. Sightline Wealth Management cannot guarantee the accuracy or timeliness of such information 

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Sightline Wealth Management LP is a wholly owned subsidiary of Ninepoint Financial Group Inc. (“NFG Inc.”). NFG Inc. is also the parent company of Ninepoint Partners LP, it is an investment fund manager and advisor and exempt market dealer. By virtue of the same parent company, Sightline is affiliated with Ninepoint Partners LP. Information and/or materials contained herein is for information purposes only and does not constitute an offer to sell or solicitation to purchase securities of any issuer or any portfolio managed by Sightline Wealth Management or Ninepoint Partners, including Ninepoint managed funds. 

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