PIMCO: Credit Markets Offer Some Tempting Treats
Bond powerhouse PIMCO has turned more positive on investment-grade bonds. In October, PIMCO's Mark Kiesel wrote the following comment: "Now, with credit spreads at all-time wides, we are more positive on credit valuations, simply from the standpoint that investors are finally getting paid now to take selective credit risk."
Kiesel also opines that investors are indiscrimately selling riskier assets, housing prices may drop another 10-15%, and the U.S. economy will likely avoid a prolonged recession. Please click here for the full text of his article.