Asks Joanna about market state given new Fed chair nominee, interest rates behaving well, and market uncertainty.
Dominic Chu
Joanna Gallegos
Sees resilient economy, strong company fundamentals, yield curve steepening appropriately, markets highly responsive to news.
Asks how much of EM trade is diversification vs. de-dollarization sentiment.
Dominic Chu
Joanna Gallegos
US fixed income market remains strong and stable, but non-US opportunities important; EM flows driven more by returns than dollar pressure.
Asks Joanna about best opportunities in traditional bond funds.
Dominic Chu
Joanna Gallegos
Income is back in fixed income since 2022; focus on credit, especially investment grade, moving to BBB for yield advantage with similar default risk.
Joanna Gallegos
Also likes high-quality private credit, yielding ~7% with short duration and high credit rating.
Asks about education gap for investors moving from traditional bonds to private credit.
Dominic Chu
Joanna Gallegos
Private credit ETFs like PCMM offer diversified exposure to thousands of loans across multiple managers, reducing concentration risk seen in single-manager funds.
Asks Joanna how she'll approach fixed income given new Fed chair, midterm elections, and potential catalysts.
Dominic Chu
Joanna Gallegos
Outlook consistent: credit fundamentals strong, spreads tight, attractive yields; recommends using more fixed income, likes credit and international exposure.
Asks Joanna what could derail markets in next couple quarters.
Dominic Chu
Joanna Gallegos
Main risk is investors taking too much duration risk (going too far out on curve) or piling back into equity without diversification, not necessarily a specific credit event.