Pimco Predicts Equity-Like Returns From Bonds Even After Rally
- Six- to 12-month outlook no longer favors duration extension
- Yields near 15-year highs create ‘array of opportunities’
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Bond investors can still reap equity-like returns in 2024 despite the steep declines in yield from last year’s highs, according to Pacific Investment Management Co.
Pimco’s latest “cyclical outlook,” focused on the next six to 12 months, looks for the bond market’s recent gains to be sustained but not extended in a way that would warrant increasing exposure to interest rates, as they recommended in October.