Investors Should Turn to Short-Term Bonds, DWS’s Bianco Says
- Bianco likes banks set to benefit from interest-rate hikes
- Sees risk market hasn’t priced in 4% interest rates in the US
David Bianco
Source: Bloomberg
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Investors are “better off for now” in short-duration debt as the bond market has failed to price the risk of higher interest rates, according to David Bianco, the chief investment officer for the Americas at DWS Group, which holds about $1 trillion in assets under management.
Treasury bills as well as two- and three-year notes from the US government make sense to hold as the market hasn’t priced the Federal Reserve’s policy rate reaching 4%, he said in an interview Friday with Bloomberg Television.