Capital Ideas^TM

Quarterly macro and market insights from Capital Group’s fixed income team

The statements expressed represent perspectives from Capital Fixed Income Investors, as at 31 March 2023. The views of individual portfolio managers and analysts may differ. © 2023 Capital Group. All rights reserved. Data as at 31 March 2023, and attributed to Capital Group / Bloomberg Index Services Ltd, unless otherwise stated.

Recession risk heightened as hints of economic slowing emerge
 

• The banking crises in the US and Switzerland are unlikely to threaten the broader stability of the global financial system but these events will likely tighten lending standards
• Inflation rates remain elevated globally and are unlikely to reach central banks’ targets by the end of the year
• Tightening monetary conditions are starting to bite, and investors are beginning to price in a more challenging growth environment

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• This material is not intended to provide investment advice or be considered a personal recommendation.
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