Multi-Sector Bond Quarterly Update – April 2025

Watch 5 min

TwentyFour Asset Management’s Eoin Walsh breaks down a turbulent first quarter for investors, driven by newly imposed Trump tariffs and shifting economic forecasts.


 

Key takeaways

Multi-sector bond market performance 

  • Newly imposed Trump tariffs quickly impacted markets and early optimism around strong US growth faded as recession fears and stagflation concerns grew.
  • In Europe, recession worries persisted with below-potential growth expectations and a sharp sell-off in rates markets.
  • Eurozone defence spending surged in response to tense Trump–Putin negotiations, as Germany moved to lift its debt brake.

Market outlook

  • Markets remain on edge heading into Q2 following the April 2 2025 tariff announcement.
  • Consumer sentiment will be key to US growth trajectory amidst an increasingly divided political landscape.
  • Despite macro headwinds credit continues to offer compelling relative value.

 

 

 

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