- via Bloomberg
- Caution is the word at BlackRock, which manages $1.78T in fixed income assets. Move up in credit quality, and down in duration about sums things up. The team has no overweight recommendations in its 2018 fixed income outlook.
- With inflation set to rise next year, TIPS are the place to be, says Fidelity's Ford O'Neil. 2018 will be year to protect the big gains of 2016 and 2017.
- Goldman Sachs (NYSE:GS) also sees inflation surprising on the upside, meaning a steepening in the currently very flat yield curve. Mike Swell and team are going short duration and buying steepeners. "Our highest conviction view is around a reintroduction of volatility."
- “Europe just looks healthy,” says JPMorgan (NYSE:JPM)'s Bob Michele. The biggest risk is a pickup in inflation, and a faster pace of Fed rate hikes than expected.
- ETFs: AGG, BND, PTY, BOND, RCS, BNDX, GIM, BTZ, DBL, PCM, SCHZ, BWX, BHK, PLW, WIP, WIW, SPAB, JHI, INC, GOVT, WIA, IGOV, IUSB, AGGY, FBND, JMM
- Now read: Ivy League: Managing Your Exposure To Different Asset Classes
Original article