Salient to Investors: Timo Boehm at Pimco has reduced bets on covered notes as Europe’s covered bond market falls out of favor as investors seek better returns on their risk – some highly rated alternatives including sovereign-backed and agency notes are much cheaper. Boehm said covered bond sales this year will fall
READ MORE... →Salient to Investors: Bill Gross at Pimco cut his local-debt allocation in the Total Return Fund by 1 percent to 4 percent in May, the lowest since July, and reduced Treasuries to 37 percent of the fund’s assets in May, but says the Fed will not raise interest rates for years, making
READ MORE... →Salient to Investors: Tomoya Masanao at Pimco said: Investors should be wary of high-yield borrowers as slowing growth in Asia threatens profitability. China will average 6 percent to 7.5 percent annual growth during the next 5 years versus 9 percent annual for the past 5. Companies in Asia outside Japan almost tripled junk bond sales
READ MORE... →Salient to Investors: Bill Gross at Pimco cut holdings of Treasuries but says the Fed is unlikely to reduce QE in the near-term, and says he is sticking with bonds as long as Fed does. Gross has been advising investors to sell riskier assets and buy government debt, including inflation-linked securities and nominal
READ MORE... →Salient to Investors: Bill Gross at Pimco said: The Fed will not taper with unemployment rising to 7.6 percent and very dire metrics for the average work week and wages, but a more normal economy requires the Fed to raise interest rates to more normal levels because QE and low interest rates are distorting capital
READ MORE... →Salient to Investors: In Q1, China’s broadest measure of credit rose 58 percent and GDP gained 7.7 percent – each $1 in credit added the equivalent of 17 cents in GDP, down from 29 cents in 2012 and 83 cents in 2007. The IMF said decisive policy changes are needed in
READ MORE... →Salient to Investors: Michael Amey at Pimco said sell the pound as it may drop to a 4-year low of $1.37 during Mark Carney’s tenure at the BoE because he will want to see it decline, while a similar move against the euro is unlikely because of the euro bloc’s challenges.
READ MORE... →Salient to Investors: Andrew Balls at Pimco said Spanish and Italian government bonds offer reasonable risk-reward but are not attractive and the firm is neutral-to-underweight on the securities. Read the full article at http://www.bloomberg.com/news/2013-05-29/pimco-s-balls-says-neutral-to-underweight-spain-italy-bonds.html Click here to receive free and immediate email alerts of the latest forecasts.
READ MORE... →Salient to Investors: Money managers cut their net-long position of futures and options to the lowest since July 2007, while holdings of short contracts rose to a record. Dan Denbow, a fund manager at the $1 billion USAA Precious Metals & Minerals Fund said gold has so many drivers that it gets
READ MORE... →Salient to Investors: Bruce Stout at Aberdeen Asset Mgmt says: Optimism is too high for stocks and bond yields are too low His fund’s fixed-income holdings are at the lowest level in 25 years. The main problem is trying to get yield in a world where there is no yield, but
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