HSBC said in its Q3 2026 Global Investment Outlook it favors investment-grade
bonds for coupon income, supplemented by EM local-currency debt. Gold remains an
effective hedge and diversifier, and infrastructure offers stable cash flows.
With the global central-bank easing cycle near its end, HSBC advises bond
strategies that prioritize coupons over capital gains, employ duration management
and favor high-quality issues. The bank maintains an overweight on the energy
sector, citing attractive valuations, cash flow and dividends amid high oil
prices and the sector’s role in hedging oil-price volatility.