TCW, the bond manager, says residential mortgage-backed securities and commercial mortgage-backed securities will continue to offer the best opportunities for healthy returns in the U.S. fixed income markets, a year after their rally began. TCW predicts that the Federal Reserve will maintain inflationary policies, which would support credit-related bonds at the expense of U.S. treasuries. Tad Rivelle, cio of TCW, is basing his firm’s prediction on the expectation that there will not be another recession in the near term.
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