(Bloomberg) — US investment-grade credit appears to be a better bet than Treasuries given America’s downbeat fiscal outlook with deficits projected to plow higher, according to Deutsche Bank AG’s private banking arm.
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It may not matter whether President Joe Biden wins the November presidential election, or Republican candidate Donald Trump returns to office: US government spending is likely to increase, said Deepak Puri, chief investment officer for Americas at Deutsche Private Bank in New York.
“Given the fiscal backdrop, I think it makes sense to consider investment grade” credit, he said in comments to reporters. “I’m not saying that short duration Treasury bills aren’t appropriate, but I think if you’re getting a nice 30, 40 basis point spread on Treasuries, it might be a good way of investing in fixed income.”
Just this month, the nonpartisan Congressional Budget Office increased its…
