Home Home | news | Investments | Pimcos Gross says bonds have seen best days

 Top Main Categories

  Builders   (29506 Hits)

  Car   (25807 Hits)

  Main   (22065 Hits)

  Automation Systems & Equipment   (17089 Hits)

  Cable & Wire Equipment   (16940 Hits)

  Accounting   (12248 Hits)

  Advertising   (11729 Hits)

  Agricultural   (10907 Hits)

  Boats   (10816 Hits)

  Amusement   (10614 Hits)

 Recent Listings

  Surrey Lofts - South East, Surrey, Walton On Thames.

  We offer the very best loft conversion service in Surrey with a huge amount of experience and happy


  Builder Directory Manchester - North West, Manchester, Manchester.

  Advertise your local building company or supply business here.
Local builder, trusted builders, r


  Daniel Adams Removals - South East, Buckinghamshire, Milton Keynes.

  Daniel Adams Removals is a professional removals company based in Milton Keynes and offers removal s


  BHNO Wine Bar - East Midlands, Aberaeron, York.

  BNHO Wine Bar is a gorgeous little tasting room and box bar in York serving wine and beer on tap plu


  Kool-It Services - North West, Manchester, Manchester.

  At Kool-It, we provide air conditioning, refrigeration, and ventilation services. We pride ourselves


Pimcos Gross says bonds have seen best days
15 2014, 07:32 | Gross, said, Pimco, year, countries, securities, according, growth, invest, increased, may, market, stock, inflation, buy, Investment, Canada, nations
Bill Gross, manager of the worlds biggest bond fund at Pacific Investment Management co., said the almost three-decade bond market rally may be drawing to a close. Excess borrowing in nations including the U.S., U.K. and Japan will eventually lead to inflation as governments sell record amounts of debt to finance surging deficits, mr. Gross said. Pimco, which announced in December that it would offer stock funds for the first time, is advising that investors buy the debt of counties such as Germany and Canada that have low deficits and higher-yielding corporate securities. Bonds have seen their best days, mr. Gross said in a Bloomberg Radio interview Thursday from Pimcos headquarters in Newport Beach, Califa. We are focused more in spread space than in yield space. Durations should be shorter than index and you should be taking a little more risk in terms of spreads. Yields on two-year U.S. Treasury notes are likely to rise to 1.25% to 1.5% from 1.08% in the next year as the economy strengthens and the Federal Reserve begins to increase interest rates, mr. Gross said. Real interest rates are moving higher, said mr. Gross, who co-founded Pimco in 1971. Thats the main bear element in the bond market. Real yields, which take into account inflation or deflation, have increased to 1.71% on 10-year Treasuries from 1.12% at the end of last year. The yield on the 10-year Treasury note reached a high of 15.8% in September 1981 and a record low of 2.03% in December 2008 during the height of the credit crunch. the notes yield 3.89% today. Investors should avoid the debt of the U.K. and invest in shorter-maturity U.S. and Brazilian securities and longer- maturity German and core Europe bonds, mr. Gross recommended in a commentary Wednesday. Under what Pimco calls the new normal, Investors should expect lower-than-average historical returns with heightened government regulation, lower consumption, slower growth and a shrinking global role for the U.S. economy. Sovereign decoupling is symptomatic of the realization by the market that sovereign credits are vulnerable at some point down the road, said mr. Gross, who serves as co-chief investment officer with Mohamed El-Erian. Mr. Gross increased holdings of bonds from non-U.S. developed nations in his Total Return Fund for a fourth month in February, taking them to the highest level since May 2004, according to data on the companys Web site on March 17. The fund manager raised the proportion of the securities to 19 % of assets in February from 18% in January. Gross increased U.S. government-related debt to 35% from 31%, the first rise since October 2009, and lowered net cash to 2% from 9%. The $214 billion Total Return Fund returned 16% in the past year, beating 54% of its peers, according to data compiled by Bloomberg. As of December, Pimco managed US$1-trillion in assets. Pimco is a unit of Munich-based insurer Allianz SE. The U.S. budget deficit reached a record US$1.4-trillion for the fiscal year that ended Sept. 30 amid falling tax revenue from the recession, a bailout of the banking and auto industries, and the US$787 billion economic stimulus package. U.S. Treasuries have returned 0.9% this year, compared with 2.7% for German government bonds and 0.5% for U.K. gilts, according to indexes compiled by Bank of America Merrill Lynch. All Group of seven countries, except Canada and Germany, will have debt-to-GDP ratios close to or exceeding 100% by 2014, John Lipsky, first deputy managing director of the International Monetary Fund, said in a speech March 21 at the China Development Forum in Beijing. Pimco filed with U.S. regulators in December to start a stock mutual fund that can also invest in bank loans, junk bonds and distressed securities. the Pimco Global Opportunities Fund will buy securities and financial instruments economically tied to at least three countries, one of which may be the U.S., according to a company filing. Investors should move outside of the United States, in choosing stocks, mr. Gross said. Emerging and developing countries because they are now creditor countries that feature strong growth while developed countries are the debtor countries and carry weaker growth, he said. The typical suspects to invest in include Brazil, China and India, mr. Gross said.
Related news:
» Top Ten S&P 500 Index Funds: Large Cap Core Mutual Funds with Lowest Costs
This investment report discusses lowest cost S&P 500 large cap core index mutual funds. In this ...
» Man Utd not for sale, insist Florida owners
The statement came amid speculation about a possible offer from the Qatar royal family. last week ...
» Research Roundup: Investing Ideas and Analysis for the Week of Nov. 29
Is there still time to buy gold? as the markets whipsawed in response to news from China, North ...
» Can someone check my answers please? Thanks!!!?
1.two categories of expenses for merchandising companies are a. cost of goods sold and financing ...

Link to:
Add to Blog »
: Investments | 839 | »

You can login using the proposed social services to add a comment.
Comments from authorized users are added to the directory without checking administrator.

You can log in using: Yandex Google Mail.ru Twitter Loginza MyOpenID OpenID WebMoney
Your name: *  
Your email (optional):     
Review: *  
  characters left.
: *  
 Top Listings

  Overseas Express Ltd. - Chaudhry Hukam Dad - Director 0121-328-3907 - Unknown, West Midlands, Birmingham.

  Overseas Express Ltd. - Holiday & Travel Agencies - 178 Alum Rock Road

  (3302 Hits since0-0-22.10.2012)

  GlassHouse Technologies (UK) - Mr G Sponner - Director 2077438960 - London, Greater London, London.

  GlassHouse Technologies (UK) - Computer Support & Services - 1 Cornhill

  (70 Hits since0-0-22.10.2012)

  St Martins Accessories Ltd - Mr R Avis - Manager 2078369742 - London, Greater London, London.

  St Martins Accessories Ltd - Model Shops - 95 St. Martin`s Lane

  ( Hits since0-0-22.10.2012)

  Sales Activation Solutions - Mr J Leutton - Chief Executive 0845-345 6400 - London, Greater London, London.

  Sales Activation Solutions - Sales Promotion Consultants - Wolverstone House

  (102 Hits since0-0-22.10.2012)

  Design Floor Studio - Mrs Heather Gleave - Proprietor 1764660937 - Scotland, Perthshire, Auchterarder.

  Design Floor Studio - Floorcoverings - Retail - 162 High Street

  (185 Hits since0-0-22.10.2012)

 Products and Services

Audio Visual Installations
We offer a complete audio or visual installation service into commercial properties and businesses t ...

Right to Buy Claims
Did you buy your house from the council under the Right to Buy scheme? If so, you may be able to cla ...

 Updated company

  Greenford Ltd - Mr R Hutton - Director 01865 877 820 - South East, Oxfordshire, Oxford.

  Greenford Ltd
Civil Engineering
Unit 1, London Road
Oxford  OX33 1

  Hamlin Iles & Crago - Chartered Building Surveyors - South East, Surrey, Guildford.

  Hamlin Iles & Crago - Chartered Building Surveyors in London and south east - specialising in pa

  Service Graphics North - 01695 725 486 - North West, Lancashire, Skelmersdale.

   We Change Space As the UK's largest provider of , we have a long and proven track record of pro

  Broughton Pianos - North East, Worcestershire, Belbroughton.

  Broughton Pianos have been trading for over 30 years, and in this time have established themselves a

  Tekfirst - Yorkshire and the Humber, North Yorkshire, Harrogate.

  Tekfirst is a professional full-service digital marketing agency which offers an array of services f

 Featured Listings

  Countrywide Surveyors - Mr Mark Sheldon 024 76550172 - West Midlands, West Midlands, Coventry.

  Countrywide Surveyors - The kind of business activity - Surveyors & Valuers - SIC - 7420 - Address -

  Lateral Visions Software Co Ltd - Dr Carl Gavin - Managing Director 0151-252 0808 - Unknown, Merseyside, Liverpool.

  Lateral Visions Software Co Ltd - Computer Systems & Software (Development) - Unit 3E

  Promo - Mr R Jones - Managing Director 0151-707 8808 - Unknown, Merseyside, Liverpool.

  Promo - Marketing Consultants & Services - 5-6 Bold Place

  Gigwise - Mr A Day - Partner 0151-709 4459 - Unknown, Merseyside, Liverpool.

  Gigwise - Newspaper & Magazine Publishers - Gostins Building

  Newspin PR - Mr D Smithson - Managing Director 0151-487 7207 - Unknown, Merseyside, Liverpool.

  Newspin PR - Public Relations Consultants - 21 Merlin Court

My Notebook (0) UK Business Directory
This Page Took 2.059 secs To Load, Current Template - "shape", Language - "en".
GZip Compression Disabled, 60 SQL Queries Executed, Took 1.876 secs ( Average 0.031 secs )

Business directoryFree xml sitemap generator
+44 (0) 247-699-67-96, +44 (0) 843-532-55-12