March’s publication summarizes two outlooks for fixed income markets. The first discusses various headwinds for bonds including better economic data and possible investor rotation into stocks, but points out that year-to-date fund flow data reflect investor recognition of these risks. The second focuses on the high-yield market, and talks about how fundamentals are starting to show some slight deterioration, with a few offsetting factors like lowering borrowing costs.

• “Thank You for the Interest” Hans Mikkelsen et al., Bank of America Merrill Lynch, March 8, 2013
• “Leveraged Financial Insights: Leveraging the Recovery” Adam Richmond and Jason Ng, Morgan Stanley, March 11, 2013