State Street Global has no concerns about municipal bonds right now and feels most municipalities are in good shape. “If I was going to switch something to municipal bonds, I would take from corporate,” he said.
Braz also said the firm does not feel a recession is imminent.
“We are strong believers in the theory that the natural state of an economy is growth. For instance, Australia has not had a recession in 25 years,” he said. “We don’t say the economies in Australia and the U.S. are alike, but we do not see a recession in the U.S. in the near future.”