Halister News

(Bloomberg) -- Kumar Palghat, the incoming global head of fixed income at Janus Henderson Global Investors, comments in interview with Bloomberg Television from Sydney.

• Doesn’t think the U.S. is going to go into recession in 2017
• Says stronger dollar to hamper U.S. exports, but they are a small portion of nation’s GDP
• Stronger dollar may present headwind, but U.S. fiscal and tax policy may be more stimulative, meaning the Fed doesn’t have to do as much “heavy lifting” as it has in the past, he says
• Favors floating-rate assets over fixed-rate assets
• Prefers corporate bonds to sovereigns
• “The key for 2017 in fixed income is how do you not lose capital, yet at the same time at the end of the year, how do you get a higher coupon in your portfolio,” he says. “The bull market in bonds is coming to an end, we know that for a fact, the question is how quickly do rates rise and how much pain does it cause. I think it’s going to be slow and steady.”
• Treasury selloff will continue, but the pace of selloff that we’ve seen over past six months won’t be repeated over next six months, according to Palghat
• 10-year Treasuries have to yield at least 3% or 3.5% to warrant locking in money for that period, he says
• NOTE: Link to related story on Janus, Henderson merger