Pimco Cuts Asia Risk While Being Bullish on India, Indonesia
- Dialing down assets that have done well recently, Spajic says
- U.S. election, Fed policy and oil prices among global risks
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Pacific Investment Management Co., which runs the world’s biggest actively-managed bond fund, is shifting to investment grade from high-yielding dollar assets in Asia, expecting a period of global uncertainty.
The possibility of the Federal Reserve surprising markets and the U.S. presidential election are among risks, Luke Spajic, the head of portfolio management for emerging Asia at Pimco, said last week. A “disorderly” devaluation of the Chinese yuan and sharp moves in crude oil prices can also hurt global markets, he said.