Why Should I Increase My Allocation to Fixed-Rate Assets?
The Weekly Globe: in this article, we explain why we believe there is a favorable asymmetry for the fixed-rate class at this moment, which justifies greater exposure even as we approach an election year in Brazil
By Humberto Vignatti, BR Fixed Income and Currency Strategist
Recently, the Itaú Investment Committee decided to raise its recommendation in the fixed-rate class to one level above neutral, but some clients have demonstrated a certain resistance to making that shift.
In this article, we will explain the reason for that resistance and show why—even though we agree with this argument—we believe there is an asymmetry favorable to the fixed-rate class at this time that justifies greater exposure to it, especially for those whose portfolios are highly concentrated in real interest rate and CDI securities.
Read also
Check out more The Weekly Globe articles
A Historically Strong US Corporate Sector May Have Helped Avert a Recession
The Weekly Globe: in this article, we demonstrate the structural improvement in the f [...]
Expectations for Emerging Country Equities for the Rest of 2025
The Weekly Globe: in this article, we will present our view for this asset class in t [...]
2 nd Quarter Bank Earnings as CEOs weigh in on Powell and the Fed
The Weekly Globe: in this article, we explain how we tactically took advantage of the [...]