"The selloff we can see in some of these sectors such as agency mortgages, for example, that have been really impacted by the fear of the Fed leaving excess liquidity accommodation are overdone,” (AIG CIO Christine) Hurtsellers said at a briefing in New York on Tuesday.
(Yes. Her name is ironic. )
“All people are talking about is the unemployment rate,” Hurtsellers said. “Real interest rates are rising in the selloff, so if you’re the Fed chairman and you’re seeing real interest rates rising that’s not something you necessarily want this early on the cycle. We think interest rates are at least fair value.”
“The selloff in the near term is a bit overdone and has presented some nice opportunities to reload some of your risk levers in fixed income for the latter part of the year,” she said.