Sept. 20 (Bloomberg) -- Pacific Investment Management Co. says senior bank bonds, debt from companies that are resistant to economic swings and those that may benefit from growth in emerging markets are “poised to outperform given the outlook for subpar economic growth in the developed world.”
“Investors should reduce exposure to companies with high operating and financial leverage,” Mark Kiesel, global head of corporate bond portfolios at Pimco, wrote in a note on Pimco’s website. “Investments in companies supported by strong assets will also likely outperform because weak economic growth in developed economies could lead to a higher risk of default.”
Pimco, the world’s biggest bond-fund manager, is based in Newport Beach, California.
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