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PIMCO CIO Says To Buy What The Fed Is Buying

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PIMCO CIO Says To Buy What The Fed Is Buying

Speaking on Bloomberg, Mark Kiesel, the CIO of PIMCO Global Credit, said he expects a pretty deep recession, so he is quite cautious on the market overall.

Kiesel thinks global monetary and fiscal policy response has been huge. He said the Fed is now going to buy corporate bonds, which makes the higher quality spectrum of investment grade corporate bonds attractive. The defensive sectors, like utilities, towers, health care and telecom, are particularly interesting, he said. 

Overall, he wants to be defensive and cautious and he is not expecting a V-shaped recovery. It is more likely that it is going to be something close to a U-shaped recovery, said Kiesel. He would avoid cyclical and higher levered companies now and he would buy what Fed is buying.

 

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Posted-In: Bloomberg Mark Kiesel PIMCO Global CreditBonds Markets Media