Janus' Meyer on what would make team move fully defensive

Janus Capital Group's fixed income team has reduced the credit weighting and high yield exposure across its Core Plus bond strategy.

Seth Meyer (pictured), global fixed income research analyst, said Janus has adopted a neutral/defensive stance, despite the house view that credit spreads over treasuries of 550bps for high yield and 140bps for investment grade provide adequate compensation. He said: “We are seeing things getting done in high yield, indiscriminate of company. Also LBOs with very low equity checks are happening again and cyclicals are starting to trade near, or inside, non-cyclicals.” Meyer said the fund would go fully defensive if the outlook for US GDP growth suddenly changed, the US consumer retrenc...