by Camilla Hall, Financial Times, New York
“Pimco, the world’s biggest bond investor, has slashed
its exposure to Canada – one of its top country holdings – as it
predicts home prices will start to fall this year amid broader concerns
that it could be the next global housing bubble ready to burst.
Pimco’s flagship $237bn Total Return Fund, managed by Pimco founder
Bill Gross, halved its exposure to Canadian debt – which includes
provincial bonds – to 2 per cent of its portfolio in the third quarter
from almost 4 per cent a year earlier, according to data compiled by
Morningstar. It cut its exposure every quarter in that period, according
to the data.
The fund has been “bearish” on Canadian housing for some time and
expects a decline in housing activity and prices this year as mortgage
credit tightens and borrowing rates increase, Ed Devlin, who oversees
Canadian investments across Pimco, told the Financial Times.” … Read on
Please share this article
No comments:
Post a Comment