Rise Above Rates

Opportunities in Today’s Rate Environment

Heightened volatility may give rise to investment opportunities for skilled active managers.

Dan Ivascyn, Group CIO and portfolio manager, explains the opportunities PIMCO sees in the bond markets today.

PIMCO believes the current investment climate is particularly attractive for active strategies.

  • Moving away from traditional benchmarks is increasingly attractive given that many of the instruments embedded in these benchmarks appear highly supported by central bank purchasing activity.
  • This environment has been a bit more volatile than in the past. Accordingly, we think that financial markets will be prone to overshoots across many different segments.
  • This is a good environment for PIMCO to leverage the best-income oriented ideas from our portfolio managers around the globe, and implement them in an effective way on behalf of our shareholders.

More from PIMCO on Rates

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Rising Rates and Bonds

A short video offering basic education on what the fed funds rate is and how changes in the rate may impact bond investments.

PIMCO’s Outlook for Rates

Even amid a tighter policy environment, interest rates should remain historically low in the years ahead.

Rising Rates: Dispelling the Myth

A reasoned analysis that takes into account historical interest rates, the likely path of rates going forward and the impact of past interest rate rises on returns suggests that rising rates may not be such a threat to bond investors.

The Benefits of Active Management When Rates Are Rising

After nearly seven years of a near zero federal funds rate, investors are concerned about an eventual Fed rate hike and investing in the current environment. We discussed rising rates and the benefits of active management with PIMCO managing director Jim Moore.

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A Word About Risk : All investments are subject to risk and may lose value

Statements concerning financial market trends or portfolio strategies are based on current market conditions, which will fluctuate. There is no guarantee that these investment strategies will work under all market conditions or are suitable for all investors and each investor should evaluate their ability to invest for the long term, especially during periods of downturn in the market. Outlook and strategies are subject to change without notice.

This material contains the current opinions of the manager and such opinions are subject to change without notice. This material has been distributed for informational purposes only. Statements concerning financial market trends are based on current market conditions, which will fluctuate. Information contained herein has been obtained from sources believed to be reliable, but not guaranteed. No part of this material may be reproduced in any form, or referred to in any other publication, without express written permission. PIMCO is a trademark or registered trademark of Allianz Asset Management of America L.P. in the United States and throughout the world. THE NEW NEUTRAL and YOUR GLOBAL INVESTMENT AUTHORITY are trademarks or registered trademarks of Pacific Investment Management Company LLC in the United States and throughout the world. ©2015 PIMCO