Edmond de Rothschild suggests increasing fixed-income duration

Sébastien Senegas, head of Iberia and Latam for Edmond de Rothschild Asset Management, suggests that investors may consider gradually increasing duration in fixed-income portfolios. This recommendation comes as central banks enter a cycle of interest rate hikes.

Senegas notes that while market complacency is difficult to gauge, strong corporate earnings in the US and Europe, particularly in the technology sector, provide positive momentum. He expresses confidence in corporate credit, noting that while investment-grade companies are attractive, high-yield opportunities should be evaluated on a case-by-case basis, especially given the debt levels of some tech firms.