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While US monetary policy continues to drive investors down the credit curve, some portfolio managers warn that it is already too late to start allocating to lower-quality credits. "Clearly the time to rotate into higher-yielding or riskier assets was in 2009. The performance of these assets has been very strong through 2009 and 2010. We have seen a decoupling between our approach and other corporate credit strategies. It’s not really the time to go deep down in credit. We are keeping our positions constant or taking a little risk off the table," says Dan Ivascyn, a Newport Beach-based managing director at Pimco and portfolio manager on the mortgage-backed and asset-backed securities team.