For the first time since before the credit crisis, bond buyers are demonstrating more confidence in the U.S. banking system than in industrial companies as lenders fortify balance sheets while firms from Verizon Communications Inc. to Apple Inc. borrow record amounts.
Pacific Investment Management Co. is becoming less dependent on Bill Gross, preparing for an eventual future without the world’s best-known bond investor and adding pressure on its rising stars to live up to his legacy.
Pacific Investment Management Co. is wagering on sectors from chemicals to airlines with ties to regions with the best outlooks for growth as Europe’s debt crisis and the U.S. fiscal cliff of higher taxes and spending reductions threaten to derail the global recovery.
Bond investors should cut risk and hold more cash as Europe’s sovereign debt crisis may lead to a recession that will hurt companies around the world, according to Pacific Investment Management Co.’s Mark Kiesel.
Investors are “finally” acknowledging the risks of holding corporate bonds with yields hovering at about record lows as the Federal Reserve holds benchmark interest rates at close to zero for a fifth year, according to Pacific Investment Management Co.