Some high-yield bond-fund PMs are making a break from the risky asset class and looking elsewhere for returns after a two-year bull run, the Wall Street Journal reports
"We like junk bonds a lot more today than six months ago, but we are not ready to buy them yet," said Jeffrey Gundlach
, head of DoubleLine Capital LP[see profile]
, at a recent meeting, adding these companies are likely to start defaulting in 2012 when their debt comes due.
Specifically, some fund firms such as BlackRock Inc.[see profile]
are reportedly betting on less risky assets such as corporate debt in Europe or emerging markets, commercial mortgage-backed securities and convertible bonds.
"While there's tremendous amount of uncertainty, good opportunities are starting to present themselves," Jim Keenan
, head of leveraged finance portfolios and investments at BlackRock Inc., told the pub.
Other high-yield PMs such as Julianne Bass
, who manages $1.6 billion of high-yield assets for USAA[see profile]
, are also reportedly betting on mortgage-backed securities.
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