DB Advisors offers global outlook: Corporate credit to remain strong

By Andrea Heisinger

New York, Feb. 25 - Deutsche Bank's asset management division, DB Advisors, offered insight into the global fixed-income outlook during a conference call on Thursday morning.

The corporate credit market in the United States is viewed as an opportunity, said Jamie Guenther, head of U.S. institutional credit research.

There have been "a number of positives" when studying companies' balance sheets, he said. Those include that the "cash hoard is at significant levels - excluding financials - which was brought about due to cutting expenses like labor and capital expenditures.

"We are looking at the global systemic issues being manageable in the context of the corporate credit world."

After an initially positive outlook for 2010, there is concern over growth in the second half of the year, Guenther said.

Despite that, the corporate sector will "continue to be a fairly exciting credit market this year," he said.

"It won't be as exciting as last year, and we will have episodes of systemic risk. It comes down to the management of [a] credit portfolio."

And that credit portfolio should be global, said Kenneth Bowling, CFA, managing director and head of institutional fixed-income investments for DB Advisors.

He said that although thematic investing is very common, it's also a setup for an "all-the-eggs-in-one-basket scenario."

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