In this Q&A, Dan Ivascyn, PIMCO's Group CIO, Managing Director, and one of the lead portfolio managers for PIMCO's income portfolios discusses building resilience, portfolio positioning and more.
Q. Can you discuss your current portfolio positioning in the Income Strategy?
A. We've been much more active in terms of tactical duration management in our Income Strategy than we have been over the last decade or so; but our views are somewhat neutral regarding interest rate risk.
There are strong positive technicals in the market, particularly coming from the private credit sector and allowing the refinancing of some of the weaker credits in the traditional high yield market. However, with tight spreads, we have even been reducing some of that exposure in favor of going up in quality and liquidity, focusing on senior part of the capital structure.
Across credit markets we have a strong preference for asset-backed risk in our Income strategy. We think consumer-backed assets and seasoned real estate-backed fixed income assets, like mortgages, are going to continue to perform well on an absolute and relative basis versus some of the more economically sensitive credit sectors, like corporate high yield. That will become more apparent to investors if the economy slows more than is currently anticipated.
Read more on the outlook for bonds in 2025 in this exclusive Spotlight in association with PIMCO. By clicking "Read Here" below you agree to the data protection statement below.
DATA PROTECTION STATEMENT
Your privacy policy – Please read carefully
We set out below how and the basis under which we, Incisive Media*, will communicate with you. In our Privacy Policy we explain how we may use your data.
For subscriptions, events, sponsored content and resources, we will use the lawful basis of 'legitimate interests' and we will use the contact details supplied to us to market to you regarding your trial or subscription, reader research, events and other related products. You will always be offered the option to change your contact preferences. Where you request a whitepaper or content published by one of our third party partners or attend a sponsored event which Incisive Media hosts, we will identify the third party or sponsors to you at the time and then pass on your contact details to them. They will contact you directly and their use of your data will be governed by their own privacy policy. Events may attract additional sponsors after bookings have opened and after the date you have signed up to attend, but we will identify all sponsors to you by email before the event.
