Fixed income to step into the spotlight as US growth slows

Fixed income is expected to outperform as the US economy slows and interest rates fall, say fund managers who foresee strong demand from Asian institutional investors for short-duration Treasuries, investment-grade and high-yield bonds. In particular, Asia’s high-yield bond market is back in the spotlight as a portfolio diversifier and source of alpha. “Our base case for the US economic growth is not a recession. It's more about slower growth, which, combined with looser monetar…