, Oct. 9, 2012 /PRNewswire/ -- The flood of liquidity coming from global central banks has lowered the downside risk for the global economy, according to Standish Mellon Asset Management Company LLC, the
-based fixed income specialist for BNY Mellon.
, chief investment officer, and
Thomas D. Higgins
, global macro strategist, presented their views during a conference call today with clients and consultants. From a global macro prospective,
expects global economic growth of 3.3 percent in 2013, slightly below the consensus forecast of 3.6 percent.
"In developed markets, we are more pessimistic than the consensus on
the United States
due to the impending fiscal cliff," said Higgins. "In emerging markets, we have downgraded our forecast for
because of weaker global demand. However, we have upgraded our forecast for
because of stronger domestic demand and higher commodity prices."
executives noted that U.S. credit markets historically have weathered low-growth environments relatively well.
"Given the Fed's assurance that interest rates will remain low for a longer period of time, investors can expect to benefit from the additional yield of corporate bonds," Leduc said. He added, "Peripheral European government bond yields still have room to fall if and when the European Central Bank begins buying their debt under the Outright Money Transactions Program."
Higgins cautioned that the markets still face the threat of volatility from the uncertain outcome in dealing with U.S. fiscal cliff and the timing of bail-out requests in peripheral
Notes to Editors:
Standish Mellon Asset Management Company LLC
, with approximately
of assets under management, provides investment management services across a broad spectrum of fixed income asset classes. These include corporate credit (investment-grade and high-yield), emerging markets debt (dollar-denominated and local currency), core / core plus and opportunistic (U.S. and global) strategies.
also offers full service capabilities in insurance and liability driven investing. The firm also includes assets managed by
personnel acting as dual officers of The Dreyfus Corporation and The Bank of New York Mellon.