Early tariff announcements initially caused large capital outflows from U.S. stocks and bonds, according to Reuters. While outflows have since slowed as investors re-engage with the market, widespread economic uncertainty has caused their investment strategy to shift towards higher-rated and investment grade bonds. Bias towards these bonds have caused tighter credit spreads as investors continue to watch changing economic conditions.
Economic Uncertainty Influences Investment Strategies
Published on May 5, 2025
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