Pimco’s Hodge Says There’s Still an ‘Opportunity’ for Greek Pact

Greece is relatively small part of EU, has small market impacts “and we’ve seen that,” Pacific Investment Management Co. CEO Douglas Hodge says at Toronto Global Forum.

  • “The markets have accomodated this”
  • NOTE: Pimco parent Allianz owns second-most amount of Greek sovereign debt, behind ECB
  • “Not clear to me that unmanaged is less risky,” he says of

passively managed investments, index funds

  • New era of austerity, re-regulation with overall systemic risk reduced, balances of banks stronger
    • Market volatility is higher following change of bank roles
  • Says world is in environment of low interest rates, flat yield curve
  • Sees rising demand for high-quality income
    • “Arrows are pointing up” at Pimco despite challenging yr