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Look for value in investment grade corporates and high yield

Tuesday, March 15, 2016 - 03:47

The fixed income rally is likely to continue, says Schroders' Andy Chorlton. He favors domestic-oriented corporate bonds.

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Investors selling off stocks as the Fed begins its two day meeting. Joining us now for a look at the markets and the Fed Andy Charlton he's head of US multi sector fixed income at travelers welcome it. And what factors are driving down stocks today while I think generally in the market in my own we're seeing such volatility that. Does not want factories just people's event of a bounce and anything and take profit I think it's one thing's we'll get bouncy. No doubt people need to have a longer term perspective some ointment in it's market. Missing there sort of tepid today is that the Fed means investors line I think so I think there's a lot of Iran question marks of that. Having gone from no height priced in and in the and now this seems to be some expectation might. Rate hike in April and you could easily argues that it would make sense to me to Mars if it's just like a place in what are you looking for tomorrow. I don't think will get anything tomorrow I perceive think we should get them tomorrow. And if you think about the perspective. Things yet to try to volatile time but things don't materially well last night was last year on the last from them. And so I think would make sense just to chip away normalization the right policy. Do I think we'll get it no I think we probably should yet what to investors need to hear from jamming on. You get the confidence to. They're going to stocks in entrapment continue this rally we've seen since and it's ever laughing generally if you look over small pockets of the rally since everything and AG driven rally. It seems that way and when the oil price program. February 11. Everything else wrote when it. I think what they want four man from the effects of mar these. Prop match it's signaling what what. Projected movement of race is going to be so there's no surprise surprise he's excellent likes it. They want the path that we've seen a sharp. Equity rally since September 11 basically. What. Given that why then are our treasury still yielding below 2%. I think when you look at the treasury markets much more global conversation. Ten year Japanese yields fell negative. Few weeks ago we've go the the issues ECB and effect below the Central Bank. Behavior outside the US you could argue is crowning investors out pushed him into the US market we soon see. Lot of the month US fixed income assets. For investors from your situation ceases to supplement. Looking for a Morton fixed income world opportunities right now from sources which should be buying well with photos that show Riley. In fixed income and equities in the last sort of three full weeks. I think is still somebody's been hat in the best record for bombs in high yield. Less so in Munis Munis seem to be an account balances and Ayman when everything else was selling off. Last year nearly this year meanings as the place to be. They start reversing with the with the body and animal which going to assets and we still favor. And overweight agencies into corporate assets even for cost of paying tax corporate specifically with actors. We like financials we like selective. Expects an AG. And trying to focus on more domestic oriented. I'm industries where there's less. Of the potential for a negative shall fall fall embassy. And since Cecil Actividentity what areas and we prefer the high grade sixes and so high grade issuers. Some of the ones have been downgraded by Moody's recently it feels like shadow about these great reviews on which is giving people. A chance to reset positions and but this body to be had across this across the space as long as you pick the best Embree type issues is still room for the throw it right into things like Andy appreciate it thank you. Our thanks and Charlton of Schroeder's I'm Fred Katayama this is.

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Look for value in investment grade corporates and high yield

Tuesday, March 15, 2016 - 03:47