There is a clear shift in global priorities, moving from globalisation to more national interests. This is synonymous with a meaningful shift toward a prolonged fiscal-led era. However, many major economies are starting from a challenging fiscal position, raising concerns about debt sustainability, exacerbated by a high cost of capital and lingering inflation fears.

If this major shift in priorities were not enough for markets to grapple with, the hasty and abrasive execution of these fiscal initiatives by the US has also roused an erosion of trust. This raises questions about the continuation of US exceptionalism, as well as the risk of a potential reevaluation of overweight positions to US assets.

Listen as Brett Lewthwaite, CIO and Head of Fixed Income for Macquarie Asset Management, summarises Issue 01 of our Fixed Income Strategic Forum 2025, with Macquarie Asset Management’s Head of Research Daniel McCormack.

©2025 Macquarie Group Limited [4537454]

Relevant disclaimers and other information can be found here.