Economics
Pimco Sours on Financial Bonds in Record Rally: Credit Markets
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Financial bonds worldwide are on pace for their best annual returns on record, leading investors from Pacific Investment Management Co. to DoubleLine Capital LP to see an end to the four-year-old rally.
Debt of lenders from JPMorgan Chase & Co. to HSBC Holdings Plc is headed for a 15.4 percent gain this year, poised to exceed the unprecedented 15.2 percent in 2009, according to Bank of America Merrill Lynch index data. The bonds are beating industrial notes by 4.3 percentage points in 2012, the biggest outperformance ever.