Reasons to move cash back into bonds

Matt Eagan, CFA®, Head of the Full Discretion Team, Loomis, Sayles & Co., thinks we're in a higher-for-longer interest rate environment, and that's really being driven by some structural features that pervade the economic landscape. “Most importantly, the fiscal deficits that a lot of advanced economies are facing are structural in nature and related to demographics, security concerns, electrification, and the spending that's going on in those areas,” said Eagan. He expects these factors to be tailwinds for inflation and keep both real rates higher and inflation premiums higher as we go through various market cycles.
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