Halister News

(Bloomberg) -- Credit is a good place to be as the presence of the central banks in the market offers a great backstop at the moment, according to Janus Capital Group portfolio manager Ryan Myerberg.

• Credit is a good option compared with other markets, given its low volatility and steady returns
• “The risk of a bubble in credit is real as spreads look stretched now,” London-based Myerberg says in an interview. “Still, the risk-reward looks more attractive in credit compared with other markets, such as government bonds, where yields are low to negative. Investors have to choose which risks are they more willing to take.”
• Myerberg prefers U.S. credit to EU as valuations are more attractive
• U.K. offers opportunities even though a more selective approach to individual credits is preferred given the uncertain economic outlook surrounding its economy
  • Favors both U.S. high yield and investment grade on a relative basis; cautious on high-yield fundamentals at this point in the cycle as they aren’t improving
• Recommends a cautious approach on government bonds as any material shift to fiscal stimulus from monetary policy will see yields picking up
• Myerberg manages portfolios in Janus’s fundamental fixed- income group, which had about $35.8b of assets under management at the end of March