On tapering, one bond fund manager sees Bill Gross'
pleas and raises you sunny optimism.
] Tom Fahey
, an associate macro strategist, says the bond fund upheaval is a good sign for the economy, CNBC's
Eric Rosenbaum reports.
One would think that Loomis Sayles would be spooked by the Fed action as it manages $170 billion of its $192 billion in assets in fixed-income strategies, Rosebaum reports. Sure, rates are moving higher, Fahey says, but investors have more than one move to make with bonds besides selling them, Rosenbaum writes.
Fahey was quoted as saying by Rosenbaum, "The gradual rise in rates is a sign of a healthier economy and other assets doing better, That's not something to be feared. Investors are shaking their risk aversion…Bonds aren't dead as an asset class. This is a valuation adjustment, and a healthy one. There's a growing demand for income, and the relative certainty of income that many fixed income assets can provide will always be attractive for investors."
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