Pimco Sells Australia Banks, Property Bonds as Risks Climb
- Manager sees opportunities to buy infrastructure, energy bonds
- AMP eyes shorts in highly leveraged real-estate companies
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Pacific Investment Management Co. is cutting its investments in Australian bank debt because of lofty valuations as well as trimming holdings of real estate and retailers’ bonds.
The unwinding of some of its holdings in Australian lenders’ debt is the first such move in about five years by the $1.75 trillion money manager. Pimco’s reduction of its exposure to notes sold by real estate investment trusts and retailers Down Under reflects concerns that surging personal debt will constrain consumption, according to Aaditya Thakur, senior vice president and portfolio manager in Sydney.