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Q&A With Dan Ivascyn, Group Chief Investment Officer At Pimco

TedTed
in Fund Discussions
FYI: Dan Ivascyn may not be known very well to the public. Yet, the Group Chief Investment Officer of Pimco is one of the most powerful investors in the world. The bond firm from Southern California manages around 1.7 trillion dollars of client money and ranks among the ten largest asset managers in the world. Ivascyn who rarely speaks to the media expects another turbulent year for the financial markets. Because of the fragile state of the global economy and political risks investors may have to cope with even more turmoil than in 2018, says the down-to-earth American in an exclusive interview. That’s why he argues for caution when it comes to equities and corporate credit. According to his view, there are better opportunities in US government bonds and in housing related investments.
Regards,
Ted
https://www.fuw.ch/article/there-will-be-more-rude-awakenings/

Comments

  • davfordavfor
    @Ted Thanks for this post. It provides a good overview of Pimco's current thinking.

    Here is one takeaway. It makes good sense from my perspective:
    One of Pimco’s highest conviction views across all our portfolios is to look for housing related investments. We think that investments tied to the US housing market will offer resilience. Whether its government guaranteed mortgage backed securities or other bonds backed by loans to homeowners or the homes themselves. We think they are going to perform very well across many different economic scenarios. They can be resilient if rates go higher. And, if we are going into a recession, these bonds will materially outperform their corporate counterparts.
  • RbrtRbrt
    Hey MFOs,
    Other than GNMA funds (such as FGMNX) what other funds fit in this category?

    Good interview, thks for posting!
  • JunksterJunkster
    Rbrt said:

    Hey MFOs,
    Other than GNMA funds (such as FGMNX) what other funds fit in this category?

    Good interview, thks for posting!

    He is talking primarily about non agency rmbs of which they still hold large positions in. A number of funds in that category including the often mentioned IOFIX and SEMPX as well as some lesser known ones such CADTX BDKAX DPFNX and RCTIX to name just a few.

  • RbrtRbrt
    edited January 2019
    News to me, thanks Junkster!
    BTW (for those not named Junkster): Residential mortgage-backed securities (RMBS)
    So you could say : NARMBS. HUM... OR Narmbs. ;-))
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