Economic Environment Corporate profits are expected to decline as the longest expansion in U.S. history has begun to fal

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Economic Environment
Corporate profits are expected to decline as the longest
expansion in U.S. history has begun to falter. Even
well-established companies in cyclical industries are likely to
suffer due to the slowing economy. The Federal Reserve stated it
has ample room to apply monetary stimulus if needed to ensure the
economy does not fall into a serious depression.
U.S. Treasury bond prices have increased significantly and
yields have fallen as investors exhibit a ‘flight to quality’
mentality. Mortgage- and asset-backed securities look more
attractive on a risk/return basis as these sectors have
historically experienced less default than corporate bonds in
similar economic environments. Low yields are expected to stay
longer and Treasury holders are looking to move to MBS
sector.
Prices of below-investment grade bonds fell sharply in recent
weeks as investors feared potential defaults.
International firms are expected to suffer more than U.S.-based
companies due to a decline in global trade activities. The
client is patriotic and directs you to invest all funds in U.S.
issuers.
Given the economic environment and benchmark data shown below,
what duration and credit quality limits will you target?
Indicate the BEST and WORST attributes of each security below
based on the client profile and economic environment.