Get Your Money Right
Options
dc's teflondon
Members Posts: 5,895 ✭✭✭✭✭
Pimco Says Better Corporates Than Treasuries
Posted by Tiernan Ray
Heck, it’s never too late for a year outlook piece. Hence, today’s article from Pimco portfolio manager Mark Kiesel, who argues corporate bonds are a better investment this year than Treasuries.
With technical indicators suggesting strong demand for fixed income, improving corporate balance sheets will make corporate bonds more attractive this year. Conversely, the U.S. Treasury keeps issuing more debt, raising supply, and the foreigners who’ve bought half the $1.9 trillion issued in the last 12 months can’t be expected to stand firm in their appetite for T-bills.
On the other hand, Gluskin Sheff’s David Rosenberg this afternoon remarks in a phone conversation that while corporates are fine, there’s nobody who shouldn’t have Treasuries in their portfolio. Treasuries are absolutely not going to default, despite the worries over U.S. credit risk — “The U.S. government is not going to default, it’s zero risk” — and yields of 3.85% or so for zero risk are pretty darned good, he figures.
Posted by Tiernan Ray
Heck, it’s never too late for a year outlook piece. Hence, today’s article from Pimco portfolio manager Mark Kiesel, who argues corporate bonds are a better investment this year than Treasuries.
With technical indicators suggesting strong demand for fixed income, improving corporate balance sheets will make corporate bonds more attractive this year. Conversely, the U.S. Treasury keeps issuing more debt, raising supply, and the foreigners who’ve bought half the $1.9 trillion issued in the last 12 months can’t be expected to stand firm in their appetite for T-bills.
On the other hand, Gluskin Sheff’s David Rosenberg this afternoon remarks in a phone conversation that while corporates are fine, there’s nobody who shouldn’t have Treasuries in their portfolio. Treasuries are absolutely not going to default, despite the worries over U.S. credit risk — “The U.S. government is not going to default, it’s zero risk” — and yields of 3.85% or so for zero risk are pretty darned good, he figures.