A changing Federal Reserve, tight credit spreads and renewed opportunities in securitized markets are reshaping the fixed-income outlook. Russ Brownback, BlackRock’s deputy CIO of global fixed income and manager of the Strategic Income Opportunities Fund, joins Ira Jersey, Bloomberg Intelligence chief US interest-rate strategist on this Macro Matters edition of the FICC Focus podcast. Brownback discusses what Kevin Warsh’s expected arrival as Fed chair could mean for policy, why he sees balance-sheet changes happening only gradually, and how public debate among policy makers reflects the complexity of the current economic environment. The two explore where Brownback sees the best opportunities across global fixed income, from carry trades and diversified credit portfolios to structured products such as commercial mortgage-backed securities, asset-backed securities, and non-agency mortgages. They also discuss relative value in Europe, improving prospects in emerging markets and why large US fiscal deficits are a market risk worth monitoring, but not yet a solvency concern.