PT Asset Management CEO Sean Dranfield talked with Proactive's Stephen Gunnion about opportunities in the bond market as investors navigate elevated long-term Treasury yields, tight credit spreads and continued economic and geopolitical uncertainty. Dranfield said the return of an upward-sloping yield curve and the Federal Reserve’s focus on controlling inflation have created opportunities that were not available several years ago. In particular, he highlighted longer-dated US Treasuries and taxable municipal bonds, arguing that higher yields have improved their prospective returns while providing greater protection against further interest-rate movements. “I think it’s a fascinating time in bond markets today, both offensively for those longer bonds and also defensively as well,” Dranfield said. Credit selection remains important. Dranfield described corporate credit spreads as extremely tight and said PT Asset Management sees more attractive opportunities elsewhere. He pointed to short, high-quality structured credit, including AAA commercial mortgage-backed securities, where spreads remain relatively wide. With macroeconomic variables such as inflation and interest rates difficult to predict, Dranfield discussed using a barbell approach: combining short-duration, high-quality bonds with longer-duration securities carrying limited credit risk. He said the intermediate section of the yield curve currently offers less compelling bond mathematics. Dranfield also explained how bonds can complement equities in an investment portfolio, providing diversification while higher prevailing rates have increased the potential returns available from shorter-term fixed-income securities. Visit Proactive’s YouTube channel for more interviews and market insights. If you found this video useful, give it a like, subscribe to the channel and enable notifications for future content. Read Proactive's Editorial Policy here: https://www.proactiveinvestors.co.uk/pages/editorialPolicy #PTAssetManagement #SeanDranfield #BondMarket #BondInvesting #FixedIncome #TreasuryBonds #USTreasuries #InterestRates #FederalReserve #CreditMarkets #CreditSpreads #StructuredCredit #CMBS #PortfolioStrategy #InvestmentStrategy #AssetManagement #Investing #Proactive