ANCHOR ENGLISH SAYING

Gene, where in Asia are you specifically looking at?

You know were looking at some areas that are going to benefit from rising domestic demand in the develop market economies like the US and Japan which is benefiting from stimulus so were looking at areas like Russia as well as Indonesia in terms of areas that are going to benefit but also not directly in China where there is some moderation in overall chinese growth again we don't think that Chinese growth is falling off a cliff here and were certainly not in the China Bear camp but some moderation should be expected in China

ANCHOR ENGLISH SAYING

If interest rates are rising and mortgage rates pushed some people out of the housing market doesn't that throw some risk in MBS?

GENE TANNUZZO, FIXED INCOME PORTFOLIO MANAGER AT COLUMBIA MANAGMENT ENGLISH SAYING

Absolutely, I think overall are a huge a part of the asset purchase program that the quantitative easing program by the Fed right now however I think valuation is the most important thing to think about right now in mortgages and mortgage risk premiums or spreads are now wider than they were before the Fed embarked on QE3 so you want to understand what you are being paid for the risk you are taking and I think the QE tapering has already been priced into the mortgage market, you know we don't buy...so every mortgage in the market but we do think there are opportunities in certain pools of the mortgages on the agency side as well as certain non agency mortgages which benefit as the housing market recovers in the US

ANCHOR ENGLISH SAYING

What are you out right avoiding if anything?

GENE TANNUZZO, FIXED INCOME PORTFOLIO MANAGER AT COLUMBIA MANAGMENT ENGLISH SAYING

WE continue to be cautious on the developed markets sovereign bonds, specifically euro-zone and Japanese government bonds we still think there is more yield increase to go in those markets perhaps similar to what we have seen in the US and also as the US leads the recovery story the dollar will strengthen against major G-10 economies so we want to be cautious on develop market FX risk in this environment.