Karya's Rajiv Sobti discusses CMBS, European credit, MBS and G-4 rates.


Reasons to increase risk positioning following the Fed announcement.

 Rajiv Sobti of Karya Capital Management
 Rajiv Sobti, founder of Karya Capital at the 2012 Absolute Return Awards. (Photo: Axel Depeux)

By Rajiv Sobti

We view [the recent] inaction and statements by the Fed as an important positive catalyst for the medium term trajectory of risk assets, both in fixed income and equities.

In a surprising shift in stance, the Fed postponed the initiation of the QE tapering, expressing concern that “rapid tightening of financial conditions in recent months could have the effect of slowing growth.” While acknowledging that labor conditions