Another factor is mortgage-backed security holdings, the largest share of the portfolio, have trailed corporate debt this year.
“I am fine with that as the housing-related investments will likely be much better performers if the economy deteriorates,” Ivascyn said.
A small additional negative last week was the fund’s holdings in Argentine government debt, which were hit by the peso plunge following the surprise election outcome that raised concerns about the country’s economy.
This article was provided by Bloomberg News.