Pimco Turns Defensive as Fed Considers Rate Move Relatively Soon
- Total Return Fund boosts mortgage debt to 55% of total assets
- Daiwa SB predicts yield curves will steepen in U.S., globally
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Pacific Investment Management Co., which runs the world’s biggest actively managed bond fund, says it’s time to reduce risk.
“We continue to stress more defensive themes in portfolio construction,” Scott Mather, chief investment officer for core strategies at the Newport Beach, California-based company, wrote in an e-mail. Pimco is “focused on selective opportunities in mortgages, inflation-linked bonds, and select credit markets,” he wrote.