Also in this playlist...
This transcript is automatically generated
Well maybe our next -- us an idea of what's going to happen and really what is an investor to do let's ask legendary bond investor Dan fuss.
But Loomis Sayles and vice chairman who manages -- -- billion dollars.
And is the co manager of the firm's flagship Loomis Sayles bond fund which year after year.
Has given very wonderful returns good to have you here funny -- -- Thank let's get to -- -- question first can help it initially -- people thought mid 2013 they might see a tightening of rates now what sometime in 2014.
Hard to -- -- what do you think.
Well I think and have a better odds.
Guessing who's gonna win the Super Bowl without knowing who's -- The one thing that is so remarkable if you look at the history of say the last half century with the Federal Reserve.
They used to keep everything very.
It was to get their gas all the time why now they're gonna come out and say well for the next three months.
Here's our best guess -- of their best gas tends to set the rate for three months.
-- One way you could look at that the way I look at it is to say we're gonna get at least three months notice.
Hope -- and may be more fun when you read everybody's opinion -- -- long.
Guess to what's coming in that'll take some more uncertainty out of the market.
And so with that did to work that -- -- sale case the next three months I think a mall right here.
Cobb and buying something really dramatic that might happen and it's hard to figure out anything dramatic action happened in the upside -- them looking at that.
And looking at what you've done over the past two years now which is really pare back to -- 0%.
US government treasury alright.
Has anything changed in your opinion when -- you suspect you might be ready to start.
Adding in some treasuries dependent on what did the yield curve look like well for -- credit to do that are -- -- soon.
The corporate care market is much more attractive -- the treasury market -- us.
So -- now the treasury market is really bonds are being held bound in yields opened price -- -- -- Central Bank buying.
-- degree at the long -- anything past ten years but on the way on -- so as long as he knew that.
It's hard to see rates going up but when they stop.
I don't wanna read about it today after.
So that's what you'll at least get some type of the sort of clarity you've got the strategic income bond fund the investment grade bond fund you've got the global market bond fund and we were picking it apart.
-- show your allocation everything from basic allocation to the actual sectors themselves.
And there is one country's government bonds in particular that you're most heavily weighted.
Canada walked right.
Well a little bit tiny bit of healed he's case a -- and we really like the currency we like our best guess about future for the currency.
It's a very different budget situation that's part of it.
The other part is they have more money coming into the country -- -- -- willing now.
Which you make a bet on the Canadian dollar as well as the Canadian government bonds.
Right lately it's aghast it's against but I think it's an informed guess in I would see that -- Canadian dollar relative to the US.
Probably has another 10% upside.
It's hard to do any more than that because of the cost -- tree you know back in May of 2011.
But Europe and we can't miss an opportunity to ask you the concerns about that insist that Greek economy needed to start growing to resolve the European debt crisis.
Haven't really seen that and now you start to see for example today a German bond float that was a little indymac.
Slightly better than the last one count people get nervous when there isn't demand for German bonds to -- like German bonds know.
And nothing about country if it's just a level loans -- priced -- yields.
Now it's at least attractive yield in the entire Euro area supposedly and I think it is the strongest credit.
But if the euro's hit a risk I really wouldn't want to be in the lowest yield.
And it right and and but trust me folks.
Going to get to his favorite corporate bonds in the next segment because -- not get -- stay with us to find out that but so don't talk about corporate bonds just yet but tell me what you think about the overall performance of -- Ben Bernanke and company.
Well I admire them I think anyone in those jobs will of their.
They've got a burden and the likes of which I would never cared to carry.
But -- you could admire him get still think he's made it a mistake or two or you -- admire them think -- keeps absolutely done the right thing.
-- and it's true.
Which and he won't know offered at I don't know -- you know we want to know all 1015 years from now we'll be reading history books.
That'll have the first picture.
Because you really don't know.
-- their Central Bank policy has been correct until long after the fact.
Filter by section