Wealth Outlook 2024 - Slow then grow

Our top 10 high conviction potential opportunities 69 Wealth Outlook 2024 | Opportunistic FIGURE 14 Behind the rise in US mortgage-backed securities (MBS) yields, a sharp rise in mortgage rates 8 Rate (%) 5yr Adjustable-rate mortgage rate 30yr Fixed-rate mortgage rate 6 2 2008 2012 2016 2020 2024 Source: Bloomberg as of November 22, 2023. Indices are unmanaged. An investor cannot invest directly in an index. They are shown for illustrative purposes only and do not represent the performance of any specific investment. Index returns do not include any expenses, fees or sales charges, which would lower performance. Past performance is no guarantee of future results. Real results may vary. FIGURE 15 Securitized credit yields higher than those for IG corporates Yield (%) US IG Corp (1-5yr) yield ICE BofA US ABS & CMBS yield 8 0 4 2014 2016 2018 2020 2022 2024 Source: Bloomberg, ICE BofA Indices as of November 22, 2023. Index used is the Bloomberg US Corporate Bond 1-5 Year Index. Indices are unmanaged. An investor cannot invest directly in an index. They are shown for illustrative purposes only and do not represent the performance of any specific investment. Index returns do not include any expenses, fees or sales charges, which would lower performance. Past performance is no guarantee of future results. Real results may vary.