Clients are better off underweighting their bond allocations due to valuation concerns in favor of equities and alternative assets, said Heather Loomis, West Director of Fixed Income at J.P. Morgan Private Bank. Loomis said she expects modest upward pressure on rates for the rest of the year, with most of the move concentrated in the short end of the curve. She said the preferred space is compelling because it is one of the few asset classes not trading near all-time lows in yield. Finally, Loomis said the preferred space has incredibly low exposure to energy issuers and the majority of paper is issued by banks which are strong from a balance sheet perspective.
Subscribe to TheStreetTV on YouTube:
For more content from TheStreet visit:
Check out all our videos:
Follow TheStreet on Twitter:
Like TheStreet on Facebook:
Follow TheStreet on LinkedIn:
Follow TheStreet on Google+:
source