GE Investment Arm Shedding Bond Risk on ‘Lofty’ Expectations

General Electric Co.’s investment arm is shedding commercial-mortgage securities, high-yield corporate bonds and emerging-market debt, anticipating that investor expectations for the U.S. economy will deteriorate.

GE Asset Management has been reducing holdings of riskier securities since late February, after favoring them as they rallied over the previous 14 months, said Paul Colonna, 42, who oversees about $53 billion as the Stamford, Connecticut-based unit’s chief investment officer for fixed income.