A more dovish rate cut than anticipated by the U.S. Federal Reserve has created an interesting setup for fixed income markets next year. The focus on its independence adds another dimension.
A 2024 court ruling allowed prediction markets to operate as federally regulated event contract exchanges. With nationwide reach, these products are pressuring state regulated sports books, lotteries and casinos—raising new considerations for non-investment grade issuers and investors.
The rapid adoption of artificial intelligence by businesses makes its impact a critical consideration in assessing the risk and return potential of lower-rated credits.