-
-
-
CIO Insights are written by Angeles' CIO Michael Rosen
Michael has more than 35 years experience as an institutional portfolio manager, investment strategist, trader and academic.
RSS: CIO Blog | All Media
Spreads
Published: 11-18-2014An interesting graphic from Ken Leech of Western Asset showing that spreads in Bondland this year are pretty much unchanged from the start of the year. This, despite the rally in US equities and solid economic growth. Thus, Ken concludes, spread products remain attractive.
I agree. There are numerous risks in fixed income, but that’s often the case. An economy that suddenly slumps will likely cause spread widening (although likely offset by rising bond prices). An unexpected economic boom could push bond prices lower (but spreads should hold true, if not tighten). An environment of moderate growth and low inflation should be favorable to spread products. And that’s my view.
Print this ArticleRelated Articles
-
18 Sep, 2023
Beach Reading
September is still beach time, so I have a few more recommendations for you. One nonfiction and four fiction, including ...
-
20 Aug, 2015
Land of Borat
I probably should not confess to enjoying Borat (full title:Borat: Cultural Learnings of America for Make Benefit ...
-
11 Sep, 2015
Mauled
Investors in Emerging Markets could be forgiven for feeling as if they've gone 15 rounds with Ronda Rousey (see below). ...