These Top Bond Managers Say Yields Are Attractive, but They Are Wary of Data Center Debt | Morningstar
Top bond fund managers Mary Ellen Stanek and Warren Pierson from Baird Advisors express optimism about the current bond yield environment, noting that yields are attractive despite concerns over inflation and geopolitical tensions. They advise investors to maintain discipline and focus on quality, while being cautious about risks associated with data center debt and the potential for widening credit spreads.
With bond yields currently attractive, the key takeaway for you is the focus on investment-grade credit, particularly in the two-to-seven-year range. Baird Advisors suggests being overweight in the finance sector, especially banks, due to their strong capitalization and the potential for financial spreads to tighten relative to industrials. Avoid extending too far on the yield curve or dropping in quality to maintain a secure, high-yielding portfolio.