On the currency front, the Loomis Sayles Bond manager likes New Zealand, Canada, and Norway, but is more cautious about some emerging markets, including Brazil and Mexico.
Improved efficiencies, brand pricing power, and sufficient capital levels are some of the reasons behind these equity groups' higher moat ratings.
Relative to history and expectations, bonds are overpriced in general, says Loomis Sayles Bond manager Dan Fuss, who is taking a selective approach with caution toward credit risk.
We recently launched a dedicated economic moat section in our Premium Stock Analyst Reports.
The sale to Bayer monetizes Merck's consumer unit at a strong valuation, and removes Merck from an area where it lacks scale.
As credit spreads have tightened on a nearly continuous trend over the past year, they are becoming richly valued relative to their historical average.
The sector is feeling the pressure from regulators and appears to be fairly valued overall.
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