Fed Rate Cuts ‘Not Impossible,’ Morgan Stanley Fund Manager Says
2015-03-26 05:22:36.979 GMT
By Benjamin Purvis
(Bloomberg) -- Michael Kushma, chief investment officer for
fixed-income at Morgan Stanley Investment Mangement, speaks at
an event in Sydney.
* Says while the Federal Reserve is likely to increase its
benchmark interest rate, it’s “not impossible” that the
U.S. central bank could reduce rates further before raising
again
* “The ECB has made clear that you can move rates negative
and it’s not disastrous for an economy or a financial
system, at least modestly negative interest rates,” he says
* Fed could raise rates in September this year or March next
year, although “it’s completely up in the air right now
exactly when that materializes,” Kushma says
* Sees greenback rising in value over longer term
* Says that while “there are no bargains in bonds” they’re
not “too far away from fair value”
* Kushma favors assets linked to cyclical recovery such as
high-yield debt; he also likes asset-backed securities and
selected emerging markets
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To contact the reporter on this story:
Benjamin Purvis in Sydney at +61-2-9777-8657 or
bpurvis@bloomberg.net
To contact the editor responsible for this story:
Adam Haigh at +61-2-9777-8635 or
ahaigh1@bloomberg.net
2015-03-26 05:22:36.979 GMT
By Benjamin Purvis
(Bloomberg) -- Michael Kushma, chief investment officer for
fixed-income at Morgan Stanley Investment Mangement, speaks at
an event in Sydney.
* Says while the Federal Reserve is likely to increase its
benchmark interest rate, it’s “not impossible” that the
U.S. central bank could reduce rates further before raising
again
* “The ECB has made clear that you can move rates negative
and it’s not disastrous for an economy or a financial
system, at least modestly negative interest rates,” he says
* Fed could raise rates in September this year or March next
year, although “it’s completely up in the air right now
exactly when that materializes,” Kushma says
* Sees greenback rising in value over longer term
* Says that while “there are no bargains in bonds” they’re
not “too far away from fair value”
* Kushma favors assets linked to cyclical recovery such as
high-yield debt; he also likes asset-backed securities and
selected emerging markets
For Related News and Information:
First Word scrolling panel: {FIRST<GO>}
First Word newswire: {NH BFW<GO>}
To contact the reporter on this story:
Benjamin Purvis in Sydney at +61-2-9777-8657 or
bpurvis@bloomberg.net
To contact the editor responsible for this story:
Adam Haigh at +61-2-9777-8635 or
ahaigh1@bloomberg.net