Sector Views

Our Sector Team leaders share perspectives on performance characteristics, opportunities, and risks across a broad range of fixed-income asset classes.


 


August 16, 2017

High-Yield Corporate Bonds: Prone to a Near-Term Shock

Seasonal patterns suggest that we will experience more summer volatility before an end-of-year rally.


August 16, 2017

Investment-Grade Corporate Bonds: Waiting for the Sleeping Giant to Wake

Technicals are creating some opportunity, but market complacency in the face of headwinds is concerning.


August 16, 2017

Municipal Bonds: Headline Risk as More States Struggle

Focus on quality as political uncertainty and budgetary concerns haunt many municipalities.


August 16, 2017

Non-Agency Residential Mortgage-Backed Securities: Limited Compensation for Risk

We favor a defensive approach that emphasizes shorter-maturity senior tranches.


August 16, 2017

Rates: Fed Policy Will Dictate Demand

A barbell position remains appropriate as the yield curve flattens further.


July 24, 2017

High-Yield and Bank Loan Outlook: Bank Loans to Gain from Further Rate Increases

High-yield and bank loan coupons are converging—just as they have in the past three tightening cycles.


May 18, 2017

Asset-Backed Securities and CLOs: Spreads Churn Tighter

Finding value in off-the-run transactions.


May 18, 2017

Agency Mortgage-Backed Securities: Overshadowed by Fed Policy

The Fed’s balance sheet normalization plans raise concerns, but declining prepayment risk should diminish the net impact.


May 18, 2017

Bank Loans: Refinancing Surge Continues

Spreads continued to tighten as refinancing surges, but they remain well above pre-crisis averages.


May 18, 2017

Commercial Mortgage-Backed Securities: Same Risk, Less Reward

Negative net supply, insatiable demand, and risk retention requirements compress AAA/BBB spreads.







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