BOJ’s Peg to Zero Means Opportunity in U.S. Debt: Prudential
- Reach for yield in the credit sector to continue, Collins says
- Favors U.S. banks, smaller companies that have de-levered
Prudential's Collins Sees Global Yield Curve Flattening
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The Bank of Japan’s decision to freeze the yield on its 10-year government bond near zero will continue to fuel opportunities in the U.S. debt market amid a global hunt for yield, Prudential Financial Inc.’s Michael Collins said.
The BOJ’s decision "is going to keep the U.S. 10-year pegged and lower the volatility of that, which presents an opportunity," Collins, Prudential’s senior investment officer for fixed income, said on Bloomberg TV. "It exacerbates the reach for yield."