Sunday, July 18, 2010

Positioning For Higher Interest Rates

In a recent WealthTrack interview, conducted by Consuelo Mack, she talks with Loomis Sayles Bond Fund manager Dan Fuss. Dan Fuss is a two time winner of Morningstar’s Fixed Income Fund Manager of the Year award and has beaten the markets and its peers since the Loomis Sayles Bond Fund’s inception in 1991.

In the below interview, Dan Fuss provides insight into where he is finding value in the bond market. He also describes why he has recently shortened the average maturity of the bonds in the Loomis Sayles Bond Fund. Additionally, he talks about where he is finding value in the bond universe, which includes some global bond investments.

The lead in to the interview contains a performance comparison for treasury STRIPs and equity investments. The treasury investments have outperformed stocks for a very extended period of time. I do not believe the history of outperformance that is shown in the lead-in will repeat itself.


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