Fixed Income Perspectives — 2025 Outlook

January 13, 2025 — This presentation provides an overview of our market outlook and key themes, and it illustrates how Sage is positioned in the current environment.

Fixed Income Themes

• Rates will be contained by further Fed easing, weaker growth, and a slow grind down in inflation. Yield carry will drive returns, but duration will be a hedge against macro uncertainty.
• Spreads will remain rangebound given demand for yield and strong fundamentals. Security selection and a wider opportunity set will be key to excess returns.
• Fed pricing suggests yields are fully priced; extending out of cash and into coupon bonds is prudent as curves steepen.