COMMENTARY | SEPTEMBER 2023
Capital market
assumptions update.
© 2023 SEI For Financial Professional Use Only. Not for Public Distribution. 1
At SEI, our Investment Management Unit (IMU) recently updated its capital
market assumptions (CMAs) as part of its review and monitoring process.
Fixed-income assumptions now reflect possible future rate paths, while
equity assumptions edged higher.
Fixed income: inflation is a primary concern
The current yield curve reflects the recent aggressive rate hikes by central banks across the developed world, with the short
end of the curve currently higher than our long-term projections for U.S. cash. The curve is currently inverted, as the market
expects rates to settle at lower levels over time. We have updated our yield curve outlook to include a tighter central bank
period, but also an eventual return to an upward-sloping yield curve.
Exhibit 1: Current yield curve
Source: SEI, U.S. Treasury. As of 6/16/2023.
0.00%
2.00%
4.00%
6.00%
0 5 10 15 20 25 30
Yield
Maturity (years)
Current U.S. Treasury yield curve
