The firm sees value in municipal bonds and structured credit as inflation and rate volatility persist.
PT Asset Management is targeting U.S. municipal bonds and high-quality structured credit, citing attractive yields and favorable yield curve dynamics. CEO Sean Dranfield noted the yield curve has flattened as short-term rates rose more sharply than long-term rates, reflecting persistent inflation concerns.
Dranfield emphasized the difficulty in forecasting interest rates, even for central banks, and advocated for balanced portfolios combining offensive and defensive positioning. Corporate bond spreads have tightened, reducing compensation for lower-quality credit risk.
The firm remains rate-agnostic, focusing on flexibility in portfolio construction rather than predicting rate movements. Defensive allocations include CMBS, CLOs, and short-duration bank bonds.