Goldman Fund Manager Bracing for Australia Yield Surge
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Goldman Sachs Asset Management is avoiding Australia’s sovereign bonds and favoring floating-rate debt as it predicts 10-year yields may rise as much as one percentage point this year.
That would exceed 2013’s increase, which drove the weakest returns on government bonds in four years. The fund manager also likes infrastructure debt and mortgage-backed securities, said Philip Moffitt, head of fixed income for Asia-Pacific at Goldman Sachs AM in a Feb. 6 interview in Sydney. Lower-rated debt sold outside of Australia is also worth considering for local investors due to higher yields and increased diversity, he said.