"De-risking": Source Likes Eurozone Over U.S.

As the first U.S. Federal Reserve rate hikes approach, an institutional advisory services is recommending boosting allocations to cash and government debt as a "de-risking" is occurring.

Institutional investors recommended to reduce exposure to corporate debt

Source multi-asset researchers Paul Jackson and associate Andras Vig our out today with research that says while they continue to favor “equity-like” assets, they are reducing their exposure to corporate investment grade debt. The research report recommends “reduced high-yield allocation due to a more cautious outlook over the next 12 months,” taking into consideration higher sovereign yields and lower oil among a number of factors.

This preference for an exit out of high yield not...