The Traderszone Network

Published in TZ Latest News 2 June, 2015 by The TZ Newswire Staff

Pimco shifts focus to capital preservation, likes Aussie bonds

Bond fund manager Pimco has turned to Australian government bonds and short-term Japanese government debt as it looks not only for yield, but to protect its capital in an uncertain global fixed-income environment. The U.S. fixed-income house, which until recently managed the world’s largest bond fund, has cut the duration of its portfolio by half in the past year, sought assets across geographies, and gone for bonds that will prove resilient if economic conditions deteriorate. Duration is the weighted-average maturity of a bond after taking into account all its cash flows.