We continue to be cautiously optimistic on the U.S. economy, which has been gradually improving. Clearly, there are a number of long-term fiscal issues that the federal government needs to address, including entitlement spending and the debt load overall. Nevertheless, the United States continues to be among the most attractive developed bond markets for investors.

Failure to address the fiscal cliff in a timely fashion or another round of political posturing around the debt ceiling would certainly capture headlines, but we don’t believe it makes the U.S. debt markets particularly less attractive relative to the other options available.