Political change, continued fiscal support will drive municipal markets in 2021, although outcomes are likely to vary.
It’s tempting these days for some investors to question the role of fixed income in portfolios. After all, real yields have plunged, potentially leading to less income today and smaller capital gains tomorrow.
A brief monthly update on what's happening in the municipal bond market.
A clear communication strategy is crucial to managing market expectations around changes in Federal Reserve asset purchases and interest rate policy.
A holistic LDI portfolio may provide a superior liability hedge.
Despite seeing major market swings following the 2016 Brexit referendum, we don’t expect Britain’s departure from the European Union (EU) to have any major economic effects in our baseline outlook for 2021 and beyond. Far more important are COVID-19, fiscal policy, and bigger questions around future productivity growth.
A confluence of dynamics are set to accelerate global capital flows to emerging markets amid attractive valuations.
PIMCO’s “Income to Outcome” framework offers strategies to navigate retirement’s stumbling blocks.
Global output and demand are likely to rebound strongly in 2021, but we see risks that call for careful portfolio positioning.
With a narrowly Democratic Congress, U.S. fiscal spending is likely to increase on economic relief from the pandemic, infrastructure, and healthcare, boosting the economic rebound.
In this abridged version of our latest Asset Allocation Outlook, we discuss the opportunities and risks of investing in an early cycle recovery.
How can credit markets help active investors achieve their goals in the present low yield environment? Here are 5 ideas.
Is the 60/40 stock-bond portfolio dead? We don’t think so.
The Federal Reserve signals that monetary policy accommodation will remain firmly in place.
The U.S. stock market surged in November, erasing October’s losses even amid a rising number of coronavirus infections. Propelled by progress toward potential coronavirus vaccines and hopes for a relatively smooth transition to power for president-elect Joe Biden, major U.S. equity indices closed the month with double-digit gains.
We believe traditional fixed income should continue to provide a reliable source of diversification against a growth shock, but low rates and the risk of an inflation shock necessitate broadening the menu of diversifiers.
Some of the world’s leading countries have recently announced major sustainability targets. These moves, aimed at making economic recovery faster and more sustainable, will create investment opportunities as well.
Debt of many emerging market countries can offer robust yields and enhance portfolio diversification, provided the asset manager has the resources and sophistication to avoid potential pitfalls.
Wide performance dispersion underscores the importance of portfolio construction.
It will continue to be important to be an active investor during this period of transition and to carefully monitor the impact of policy on credit sectors.
Liquidity issues and other business risks could prompt a wave of defaults and restructurings, in turn creating fertile ground for opportunistic investing in distressed credit.
We are cautiously optimistic about economic growth over the next year, but over the longer term, disruptive factors will likely contribute to heightened volatility and lower returns across both fixed income and equity markets.
Amid an environment of near-zero benchmark and T-bill yields, for a modest increase in risk, PIMCO's short-term strategies may offer higher levels of total return and income for stepping beyond the confines of money market fund strategies.
In our view, inflation-fighting asset classes look considerably cheaper and offer higher long-term estimated returns than mainstream stocks and bonds.
Washington will likely focus on fiscal stimulus immediately – but given the realities of governing and the pandemic, economic recovery will take time.
Bundling may help plan sponsors unlock alpha potential and supplement low returns from long Treasury bonds.
Conventional wisdom says urban residents will flee cities in droves in response to higher taxes and the COVID-19 pandemic. But will that really come to pass?
PIMCO’s Global Advisory Board discusses the longer-term outlook for major economies and geopolitical developments.
Canada’s central bank looks to evolve its policy framework amid concern over disinflationary trends.
The pandemic has amplified four long-term macroeconomic disruptors, and fiscal policy – a key swing factor – may hold the key to upside or downside surprises. Read our long-term outlook and learn implications to consider when investing.
Policy will continue to be carefully calibrated as China walks a tightrope between supporting growth and maintaining financial stability.
A basket of emerging market bonds may offer the same appeal investors have long sought from U.S. Treasuries.
Launched in September 2020, the CFO Principles for Integrated SDG Investments and Finance are designed to help create a market for corporate SDG (Sustainable Development Goal) investments.
We believe the Fed’s mortgage purchase program is helping to bolster economic activity, and accomplishing more than Treasury purchases alone.
The lack of market reaction suggests that many investors are not convinced that the Fed’s new guidance represents any material shift in policy.
In a challenging year dominated by the COVID-19 pandemic, the municipal market is recovering on the strength of unprecedented federal support.
Resiliency and diversification potential remain critical in a world with meaningful uncertainty ahead.
Although the pandemic could make for a chaotic return to school, it is unlikely to create significant municipal credit stress.
The Federal Reserve released the results of its multiyear framework review alongside a speech by Fed Chair Jerome Powell at the Kansas City Fed’s Economic Policy Forum on 27-28 August. While the announcement came earlier than anticipated, the conclusions were in line with the evolutionary, not revolutionary, changes to the Fed’s framework we have long been expecting.
Despite reaching record highs earlier this month, gold remains attractively valued, according to our framework.
Research Affiliates discusses the increase in portfolio tactical shifts and recent research efforts supporting the All Asset strategies in today’s evolving investment environment.
Rising prices in July have led PIMCO to raise its core inflation forecast for 2020, but not 2021.
Looking across the global opportunity set, we see potential for attractive yield, though uncertainties surrounding the global recovery suggest this is a time to be cautious.
The Federal Reserve wants financial conditions to remain accommodative as it looks to support the U.S. recovery.
PIMCO’s CEO and its head of retirement outline the firm’s approach to generating retirement income.
