Fed intervention to the rescue of US bond market

Pioneer bond manager believes Congress plans to shore up US mortgage lenders shows commitment to alleviate housing crisis and credit crunch

The near-collapse of key US mortgage lenders Freddie Mac and Fannie Mae has been bad news for equity investors, especially in the region's financial sector. But intervention by the Fed to rescue the stricken institutions may have bolstered the country's corporate bond market. Fund managers at Pioneer Investments have been upping their overweight positions in both US investment grade and high yield bonds, reflecting growing bullishness on the region. The group's global chief investment officer Marco Pirondini said plans by the US Congress to shore up Freddie and Fannie's finances show ...