MetLife Investment Management
The latest research and outlooks in the ProAllocate library
- Fixed Income
Asia Pacific Investment Grade Bonds: Q3 2026 Recap & A Look Ahead
PineBridge Investments' Omar Slim reviews the obstacles facing Asian bond markets so far this year and outlines his expectations for yields, credit and rates through the remainder of the year.
- Private Markets
What Rate Moves Really Mean for Commercial Real Estate Cap Rates
A research model using Baa corporate bond yields and two-year Treasuries to predict private real estate pricing suggests cap rates will rise only 30bps despite a 70bp jump in 10-year Treasury yields. The firm argues investors anchoring to the 10-year Treasury risk overly pessimistic valuations, though widening credit spreads pose the real downside risk.
- Macro
What the U.S. Midterm Election Results Could Mean for Markets
The piece argues 2026 midterm results are unlikely to reshape fiscal policy near-term, leaving debt-to-GDP dynamics unresolved. It suggests a second-term push for a bipartisan Social Security deal could ease fiscal stress and lower yields, echoing early-1990s deficit agreements.
- Macro
Can AI Grow the U.S. Out of Debt?
The article argues that AI-driven productivity gains are unlikely to let the U.S. or other economies grow their way out of mounting public debt, given demographic drag, fiscal deterioration, and uncertain timing of any productivity boost. It maintains its macro outlook of elevated inflation, further Fed rate hikes into 2027, and persistently high yields.
- Fixed Income
Singapore Dollar Bonds Step into the Spotlight as a Safe Haven
The asset manager argues that Singapore-dollar bonds offer a rare AAA-rated, currency-backed alternative to US Treasuries, providing diversification and lower volatility amid shifting correlations and rising developed-market fiscal deficits. It concludes SGD debt deserves a core role in globally diversified fixed-income portfolios, though trade exposure warrants active credit selection.
- Fixed Income
Q3 2026 Short Duration Commentary
Elevated-for-longer rate expectations pushed bond yields higher in Q3, boosting income opportunities even as economic resilience supported credit markets amid rising volatility. The report argues this environment favours a quality-focused, selective approach to short-duration fixed income.
- Emerging Markets
Emerging Market Equities: A More Resilient Growth Story
J.P. Morgan Asset Management argues emerging markets equities have matured, becoming less China-dependent and more resilient to tariffs and rate shocks, with North Asian firms dominating AI and clean-tech supply chains. It concludes EM stocks trade at a steep valuation discount despite faster earnings growth, favoring active, fundamental managers.
- Equities
Q3 2026 Equity Market Review
Equity markets have stayed resilient despite higher rates and geopolitical uncertainty, propelled largely by AI-driven earnings growth concentrated in a few sectors. The review warns that narrow market leadership leaves valuations vulnerable if AI spending slows and broader economic participation fails to materialise.
- Fixed Income
Going Global in Leveraged Loans
The asset manager argues that combining U.S. and European leveraged loan markets offers superior diversification, liquidity and risk-adjusted returns amid deglobalization and macro divergence. It highlights how regional dislocations in returns and defaults create alpha opportunities for global allocators.