Zook: bond investors complacency could cost them in a slowdown
Investors started off the year by piling into BBB bonds, and they’ve been paid for it. Performance is up and investors are buying up new issuance. A recent Bank of America survey of fixed income managers showed that nearly 40 percent expect that the BBB category will outperform over the next 12 months. But one investor is skeptical. Opalesque caught up with Christopher Zook, Founder, Chairman and Chief Investment Officer of CAZ Investments during the Cayman Alternative Investment Summit, and he says the complacency surrounding fixed income is potentially dangerous at this point in the cycle.