Asset prices are higher because the Federal Reserve is flooding the market with liquidity,said Michael Brandes,Global Head of Fixed Income Strategy at Citi Private Bank.We're still bullish on fixed income.We look at corporate bonds and mortgage-backed securities,or MBS,where we've seen very good returns.The fact that it's open ended is key.That creates the impact.
We do like dividend-paying stocks.The default risk is low and fundamentals are strong for high yield debt.MBS also offer some spread.
We are very cautious about Europe.There are a lot of concerns about the banking system and other risks on the continent.You want to be cautious about what you buy.
All this liquidity is going to help fundamentals.Fundamentals are still strong and demand is still strong.
Michael Brandes is on the Global Investment Committee at Citi Private Bank.He has a BA from the State University of New York and an MBA from Columbia University Graduate School of Business.
No comments:
Post a Comment