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Morgan Stanley Wealth cuts junk allocation to zero

Published 01/04/2018, 07:24 AM
Updated 01/04/2018, 07:24 AM
© Reuters.  Morgan Stanley Wealth cuts junk allocation to zero

© Reuters. Morgan Stanley Wealth cuts junk allocation to zero

  • Tax cuts could lead to better short-term growth, says Chief Investment Officer Mike Wilson, but they could also cause the sorts of excesses which precede a recession. "[This] is something credit markets figure out before equities."
  • Preparing for deterioration in lower-quality earnings led by lower operating margins, remaining high-yield positions have recently been cut to zero.
  • Morgan is making the move as the rally in high-yield continues to roll along, with the Bloomberg Barclays (LON:BARC) Global High Yield rising to a record high this week.
  • ETFs: HYG, JNK, DHY, HIX, EAD, PHT, HYT, HYLD, JQC, ACP, ANGL, CIK, MCI, DSU, SJB, KIO, NHS, CIF, ARDC, IVH, GGM, AIF, MPV, FHY, PHF, JSD
  • Now read: Current Valuations In The Bond Market - Part II


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