Pimco Sees Bonds Benefiting as Markets Overlook Recession Risk

  • Asset manager likes fixed income over next six to 12 months
  • Growth and inflation have peaked, Pimco says in outlook report
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A mix of soaring yields and recession risk is setting up investors for an era of “extremely attractive” fixed-income returns, according to Pacific Investment Management Co.

The outlook is particularly bright for high-quality bonds over the next six to 12 months as inflation cools and growth takes a hit from the delayed effects of monetary policy in major economies, Nicola Mai, Tiffany Wilding and Andrew Balls wrote in a Wednesday report.