The Markets “I’d Rather Be a Bond”
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Mar 27, 2026 Lindsay Rosner, Head of Multi-Sector Investing at Goldman Sachs Asset Management, offers fixed income and macro perspectives. She discusses the Iran conflict as an energy-driven inflation shock. She explains why bonds can hedge risk and when they may not. She highlights recent yield creation from higher rates and spreads. She flags key central-bank meetings to watch next month.
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Energy Shock From Iran Is Driving Front End Rates
- The Iran conflict is functioning primarily as an energy-driven inflation shock, lifting oil and gas prices and pressuring central banks.
- Markets show a bear flattening as front-end yields rise faster because investors reprice central-bank actions toward tightening.
Fed Cuts Still The Modal Case Despite Market Pricing
- Goldman expects two Fed cuts later in 2026 while markets have priced out cuts and shifted to a no-cut stance.
- Lindsay points to core PCE and labor-market sensitivity to geopolitics as reasons the Fed may still cut, albeit later in the year.
Take Advantage Of Recent Yield Creation In Bonds
- Consider owning high-quality bonds as a portfolio hedge since treasuries often perform in risk-off episodes, though inflation-driven uncertainty can weaken that hedge.
- Recent yield creation (50–175bps) from higher base rates plus slightly wider spreads makes bonds attractive entry points.