Thursday, 11 August 2022 02:37

Pimco Clients Flee Fixed Income Funds

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PIMCO saw the second quarter sell-off in bond funds as investors pulled nearly $30 billion in the last three months. The biggest cause for the sell-off is the rising rate hikes and inflation which may be causing yields to rise and bond prices to fall. Still, analysts say that if interest hikes begin to stabilize then the bond outflows will seize and even reverse into inflows. 

This is the largest sell-off since the start of the pandemic, and investors are concerned a recession is around the corner. PIMCOs shining light are the few funds that it has that are doing okay despite macro headwinds and could prove to be a driving force for inflows when markets stabilize.


Finsum: Bond prices are just too low right now and yields will fall with inflation easing and the fed tightening, but its a matter of it happening soon enough. 

More in this category: « Bond Market Rally on the Horizon

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