Dan Fuss, manager of the $15.5 billion Loomis Sayles Bond Fund, said Britain’s decision to leave the European Union is hurting credit markets in Europe but won’t have a big impact on the U.S. economy.
“This is a huge negative insofar as credit in Europe goes,” said Fuss in a telephone interview Friday. “The risk here is that there will be a weakening of the willingness to come together politically in Europe.”
Guggenheim Partners’s Scott Minerd, another money manager specializing in fixed income, said the Federal Reserve will probably delay interest-rate increases as a result, and there’s a reduced likelihood of a recession in the U.S.
Fuss said he bought a small amount of U.S. high-yield debt Friday as prices fell, but that not much was available to buy.
“You couldn’t have filled a pint glass with what you could buy,” he said.