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...Bond fund giant Pimco is holding a smaller than usual position in US Treasuries and prefers the bonds of countries such as the UK and Canada, as it believes inflationary pressures may lead the Federal Reserve...
...Pimco has been wading into Turkey’s bond market, betting that President Recep Tayyip Erdoğan’s commitment to a sweeping economic overhaul has set the country on a path to regaining its investment grade credit...
...Normally Alphaville doesn’t care too much about insurance company results, but Allianz’s ownership of Pimco — the biggest bond investment group in the world — makes it a good way to understand broader fixed...
...The latest spate of borrowing in investment-grade and high-yield comes as credit spreads, or the premiums that corporate borrowers pay to issue debt over US Treasury bonds, have approached their lowest levels...
...Daniel Ivascyn, chief investment officer at Pimco, told the Financial Times that he has been running larger than usual bets on UK government bonds relative to those from the US, in anticipation that the...
...Unhedged: Pimco has a private credit business alongside its huge public credit business. How has the increase in assets flowing into private equity affected the public bond markets?...
...Elsewhere on Thursday… — How to talk to a person like ChatGPT (Ars Technica) — Index fund investments in banks (Bank Reg Blog) — How European soccer made peace with fasting during Ramadan (New York Times...
...Kristina Hooper, chief global market strategist at Invesco, said “it’s only normal that investors chasing yield would flock to European investment-grade bonds and pull down spreads”....
...Inflows into corporate bond funds have reached $22.8bn so far in 2024, according to fund tracker EPFR, the first positive start to a year since 2019, when $22.4bn had flowed in by this point....
..., fixed-rate bonds....
...The share of European corporate bond sales denominated in sterling has risen to 8.4 per cent from 6.8 per cent at the start of 2023, in the busiest start to the year in a decade for investment grade issuance...
...“While there are existing funds that target maturity ranges within investment-grade corporate bonds, these funds offer a new level of precision by enabling investors to target BBB-rated corporate bonds within...
...As you’d expect, big bond house Pimco is very loudly trumpeting bonds....
...That compares with a 3 per cent fall for an index of high-grade global bonds....
...The share of European corporate bond sales denominated in sterling has risen to 8.4 per cent from 6.8 per cent at the beginning of 2023, the busiest start to the year in a decade for investment-grade issuance...
...Like long-duration corporate bonds, investment grade or high yield, they may be liquid on a good day....
...DRSK invests 90-95 per cent of its assets in investment-grade corporate bonds, with the balance used to buy call options on large-cap stocks and sectors in the S&P 500....
...Investment grade corporate bonds at a yield of 5.5 per cent at the index level are appealing to investors as an alternative to cash — especially if the Federal Reserve will cut interest rates this year....
...But lower risk investment-grade ETFs were not immune, shipping $4.6bn — their biggest ever rout bar the Covid crash of March 2020 — with the Vanguard Short-Term Corporate Bond ETF (VCSH) accounting for $1.9bn...
...Stock and bond markets were booming, but so were financial scams. Ordinary Americans wanted to participate, but found individual stocks and bonds too expensive....
...The bulk of issuance is by non-investment-grade borrowers, with constrained cash flow problems and low profitability — nearly a third of all Russell 2000 companies are now unprofitable against about 5 per...
...BlackRock said they would only post corporate bonds with a credit rating of A-minus or better as collateral, while Schroders said only those rated investment-grade would be eligible....
...If the long-awaited slowdown does bite, that should push bond prices back up. “These higher yields will eventually slow growth,” said Mike Cudzil, a portfolio manager at bond giant Pimco....
...On Friday, bond fund giant Pimco cut its forecast to two cuts this year, from three previously....
...The latest survey of fund managers by Bank of America showed investors were the most overweight in investment-grade bonds compared with their high-yield counterparts since 2008....
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