CLSA Sees Bond Danger in Pension Switch to Stocks: Japan Credit

CLSA Asia-Pacific Markets said investors should take cues from Japanese Prime Minister Shinzo Abe’s urgency to have pension funds trim bond holdings, as relative valuations swing in favor of equities.

“The danger that bond prices drop from here is very, very real so you need to get out of those things while you’ve got a chance,” said Nicholas Smith, a Tokyo-based strategist at CLSA. “The government is saying run don’t walk.”