Are there any regions with attractive bond markets right now?
A number of regions offer attractive opportunities, and we remain upbeat about the direction of the global economy. We expect a global recovery this year and would be surprised if US gross domestic product (GDP) doesn’t grow 3 percent this year. China’s economy remains robust, and non-China, non-Japan Asia should also post impressive growth numbers. Even Japan’s economy is in recovery mode and will grow between 1.5 and 2 percent this year. Our portfolio holdings reflect this outlook; we own quite a number of Asian names. We have exposure to the Chinese renminbi, as well as positions in the Indian rupee, the Indonesian rupiah, the Singaporean dollar and the Malaysian ringgit. Our biggest position is in the South Korean won. We believe this exposure to non-Japan Asian currencies will pay off, as the US and Chinese governments are working out a grand bargain as we speak–an outcome that will be reflected in the markets over the coming weeks. Again, our three major themes are the global re