Pimco’s Bosomworth Says Spanish Bonds Offer Good Relative Value

Spanish and Italian bonds offer better yields than other fixed-income assets and are worth keeping to receive the returns, according to Andrew Bosomworth, managing director at Pacific Investment Management Co.

“When you stack up some of these countries like Spain and Italy against the other alternatives in global fixed-income they are looking like pretty good yields,” Bosomworth said in an interview on Bloomberg Television’s “The Pulse” with Francine Lacqua and Guy Johnson. “On a relative-value basis, I think this part of the world is worth investing in. If you sell it, where else do you go?”

Spain’s introduction of conditions that make debt restructuring easier, or so-called collective-action clauses, “are not going to make a major difference,” he said.

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