Morgan Stanley Preps for Even Bigger Fed-Engineered Risk Rally

From bnnbloomberg.ca

The Fed is about to bestow more gifts on the market, stoking a new phase in the risk rally, according to Morgan Stanley Investment Management portfolio manager Jim Caron. With the Federal Reserve poised to adopt a policy that could suppress rates for years to come, Caron is adding higher-yielding debt including from emerging markets to Morgan Stanley’s global fixed-income funds. “They want to make riskier assets even more appealing,” said Caron, whose team at Morgan Stanley Investment Management in New York oversees $665 billion. “That will help high-yield, asset-backed securities, emerging market debt and ... (full story)