KORP - Q1 2021 Fixed Income Survey: The Inflation Beast Has Awoken. How Big Will Its Bite Be?

• Considering the major jump in volatility at the end of February, for our latest survey we sought an updated consensus over the managers' thoughts on the speed of economic recovery.
• Additionally, we asked what their inflation expectations going forward are, and whether higher rates in the developed world could dent the previous optimism for emerging market debt.
• This survey's responses demonstrate that managers have truly embraced the confluence of vaccines, fiscal spending and easy money supply supporting asset prices.
• Managers expressed more optimism about the speed of the economic recovery.
• In regard to higher inflation, managers seem to be comfortable with predicting levels hovering around the Fed's target rate of 2%.

For further details see: