Pimco Sours on Chinese Debt as Rising U.S. Yields Erode Appeal
- Fund had been overweight Chinese debt all of last year
- Chinese bonds unappealing even on a FX-hedged basis: Chang
This article is for subscribers only.
Pacific Investment Management Co. lowered its recommendation on Chinese sovereign debt to neutral from overweight as policy divergence with the U.S. diminishes its yield advantage.
The investment giant had an overweight call on the securities for most of last year when inflows to the nation’s bonds hit a record high.