Fidelity’s $100 Billion Manager Says Rate Spike May Be Overdone

Ted

FYI: Ford O’Neil, who oversees about $100 billion in bonds for Fidelity Investments, says the sharp run-up in yields since the election of Donald Trump may not be justified.

O’Neil said he’s skeptical about the assumptions that a Trump agenda of increased government spending and tax cuts will be fully enacted and lead to faster growth, higher inflation and bigger budget deficits.

“It is all based on speculation,” he said in an interview Friday in Fidelity’s Boston offices. “The market has glommed on to the good news about growth, but not how challenging it would be to enact such a program or negatives like restrictions on trade.”
Regards,
Ted
http://www.bloomberg.com/news/articles/2016-11-14/fidelity-s-100-billion-manager-says-rate-spike-may-be-overdone

bee

Thanks Ted,

From the article:

O’Neil said that he likes Treasury Inflation-Protected Securities, leveraged loans and corporate credit, both high yield and investment grade.

Fidelity Total Bond gained 6.1 percent this year, better than 88 percent of peers, according to data compiled by Bloomberg. Over five years the fund topped 78 percent of rivals.