PIMCO: Why Traditional Bond Models Won't Work in the Next Five Years

According to Scott Mather, head of global portfolio management for PIMCO, the deteriorating creditworthiness of sovereign bonds will render useless the cyclical models that have been useful in the past for navigating the bond market.

Over the next three to five years PIMCO expects gradually rising inflation, modest changes in wages and core inflation, and a steepening of the yield curve. Click here for PIMCO's evaluation of the risks and opportunities in the world's bond markets.