As managers of bond portfolios, we need to make educated, informed decisions about which sectors offer the best value. Today, one of our favorite sectors in the corporate bond market is the oil industry. The fundamentals have strengthened after years of efficiency improvements and we have confidence in the names we invest in. A series of scary headlines coming out of the Middle East have not changed our view.
Last month, Britain seized an Iranian vessel, then in a single day Iran responded by seizing two British oil tankers in the Strait of Hormuz. These events came on the heels of the U.S. imposing sanctions against Iran in November.