Active bond giant Pimco saw clients pull their money for a second straight quarter amid the global bond selloff. The firm saw outflows of $29.4 billion during the second quarter as investors fled bonds due to Fed rate hikes triggered by sky-high inflation. High-interest rates make bonds less attractive. This was after the California-based company saw $14.3 billion drawn by investors in the first quarter. Analysts at Citigroup noted that the outflows during the second quarter were much higher than expected. The fund company has been trying to navigate a less than ideal fixed income environment where high levels of inflation not seen in a generation are eroding the value of their bond holdings. Overall, Pimco’s parent company, Allianz, saw its third-party assets under management fall to $1.83 billion.
Finsum: Amid the global bond selloff, active bond manager PIMCO saw massive outflows for the second straight quarter.