(AOF) – “Just like at the start of 2024, it is easy to spot areas of concern for 2025,” introduces Svein Aage Aanes, CIO Fixed Income at DNB Asset Management. According to him, geopolitical risks will remain present and could even increase with the arrival of a new administration in the United States. “The world will have to adapt to a possible new American trade and economic policy, while Europe prepares for elections in Germany at the beginning of 2025,” he recalls.
“On the positive side, inflation is expected to continue to moderate, paving the way for further rate cuts in the US and Europe,” continues Svein Aage Aanes.
Economic growth should, according to him, be moderate in the United States and relatively weak in Europe, but signs of recession remain limited. In this scenario, interest rates could move within a narrow range or even fall slightly.
“Credit spreads could remain tight, contributing to satisfactory bond performance. However, the potential for further tightening of credit spreads remains limited,” continues the CIO Fixed Income at DNB Asset Management.
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