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Welcome to the FIA News & Insights, a one-stop resource that includes insights from senior investment professionals on timely market events, their views on the economy and their respective markets.  Find updates on the latest media information on Frost Investment Advisors, LLC and the most recent reprints, as well as, archival information for your reference.

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2022 Fixed Income Outlook

Provided by the Fixed Income Team of Frost Investment Advisors | January 14 , 2022

Highlights

• Our base expectation is for total returns in the zero to 1 percent range for the cumulative U.S. bond market in 2022

• The foundation of this low return expectation is a solid macroeconomic outlook as the pandemic transitions to an endemic, a methodical increase in money market rates as central banks become less accommodative and a measured rise in U.S. bond yields

• The Federal Reserve will continue to keep monetary policy accommodative, but will raise money market rates on several occasions

• The credit markets will deliver some level of outperformance relative to U.S. government bonds, but similar to 2021 limited as the year begins with valuations already frothy across many sectors

• The floating rate coupon sector should outperform fixed rate sector as it did in 2021

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