Where are the best opportunities outside of traditional credit markets?

PARTNER INSIGHT: PIMCO explains how the US mortgage market could provide opportunities for active managers as we enter a new period of potentially higher volatility

After a turbulent 2015 and an inconsistent start to 2016, global credit markets rallied in 2017 - nearly without pause. This robust performance has been well-supported by a strong economic backdrop, rising corporate profits and additional tailwinds from tax reform. Nevertheless, with stretched valuations and an ageing business cycle, we believe investors should consider reducing allocations to the more speculative sectors and focus on securitised markets like mortgage-backed securities (MBS). While MBS rarely take centre stage in UK investors' portfolios, the asset class can provide a...