Quarterly Outlook
Upending the global order at blinding speed
John J. Hardy
Global Head of Macro Strategy
Althea Spinozzi
Head of Fixed Income Strategy
Summary: The Federal Reserve finally reacted to the escalating likelihood of a global recession with a sharp dovish turn last month, joining the ranks of the European and Chinese central banks. This is unhappy news for already-fragile EM and corporate bonds, especially in the high-yield space, but it augurs well for sovereigns.