As far as China, she said the current GDP growth forecasts of around 6 to 6.5 percent are “comfortable.”
The potential global risks are the rise of populism in Europe and corporate debt levels in China, although she added, “I’m not seeing enough to make me panic.”
As far as fixed-income investing ideas, she said she still sees opportunities in high yield, but buyers need to keep duration relatively short. “This is where active management should shine. Spreads are tight,” she said.
She doesn’t see spreads compressing a lot further for now, either. “Further spread compression depends on 10-year U.S. Treasurys grinding tighter. But we don’t see it as our baseline. Now is a time to make your selections extremely carefully and actively pay attention to defaults,” she said.