Fixed income remains our asset class of choice. With the Fed signaling its willingness to unleash QEII and a faltering growth outlook, Treasuries, we suspect will remain underpinned at the current low yields. With sound credit fundamentals, credit should continue to provide attractive yield. That said, with yields now at historic lows and spreads not too far from historic averages, the outsized returns from fixed income will be increasingly limited going forward.
