Pimco Avoids Long-Dated Euro-Region Bonds on Growth Outlook

Pacific Investment Management Co. is shunning long-dated European government securities because of the region’s growth outlook, according to Andrew Balls, head of European portfolio management at the firm.

“We would steer clear of the long end of European curves,” London-based Balls said in an interview on Bloomberg Television with Francine Lacqua. “What you see is very little growth, very little progress in terms of strengthening the institutions in Europe and the ECB which is reluctant to use its balance sheet, so it doesn’t look like a great environment for investing. In terms of European sovereign exposures, we think stick to the short-end of the curves because we can have some greater visibility.”

Pimco prefers to invest in emerging markets, he said. “There are better alternatives outside of the euro-zone,” Balls said.

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