Seeking opportunities in a low-yield world Seeking opportunities in a low-yield world http://www.federatedinvestors.com/static/images/fhi/fed-hermes-logo-amp.png http://www.federatedinvestors.com/daf\images\insights\article\desert-oasis-small.jpg March 29 2021 February 12 2021

Seeking opportunities in a low-yield world

Ongoing monetary, fiscal support amid emerging recovery make for a challenging search.

Published February 12 2021
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Video Transcript
00:04
Hi, I'm Randy Bauer, Senior Portfolio Manager at Federated Hermes.
00:08
As the economy recovers, what are you watching in terms of risk and opportunity?
00:11
The overwhelming presence of central monetary and fiscal intervention means, that even though credit spreads would appear to be tight by historical standards they will likely tighten more in the near future. Moreover, the continuation of that support means the potential for another correction of the type we saw on early 2020, would appear to be quite limited. And while fixed income yields are currently low by historical standards the lack of alternatives, means that investors will continue to seek yield wherever it can be found. The emergence of the global economy from the pandemic will only reinforce that.
01:04
Disclosure: Views are as of Jan. 19, 2021 and are subject to change based on market conditions and other factors. These views should not be construed as a recommendation for any specific security or sector. Bond prices are sensitive to changes in interest rates and a rise in interest rates can cause a decline in their prices. Federated Investment Management Company 21-30095 (2/21)
Tags Fixed Income . Coronavirus . Active Management .
DISCLOSURES

Views are as of the date above and are subject to change based on market conditions and other factors. These views should not be construed as a recommendation for any specific security or sector.

Bond prices are sensitive to changes in interest rates, and a rise in interest rates can cause a decline in their prices.

Federated Investment Management Company