Bloomberg Talks PIMCO CEO Manny Roman Talks US Debt Levels
May 6, 2025
Manny Roman, CEO of PIMCO and the world’s largest active bond manager, shares his insights on U.S. debt levels, highlighting a thought from Janet Yellen: “It’s not a problem until it becomes a problem.” He discusses the dynamics of the bond market amid government shifts and emphasizes the critical role of U.S. Treasuries and the dollar's status in global finance. Roman also explores strategies for navigating market volatility and the potential implications of rising yields and stagflation, urging investors to adapt to these economic complexities.
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Use Scenario Analysis for Tariffs
- Use scenario analysis to estimate GDP and inflation impacts based on different tariff outcomes.
- Prepare investment strategies acknowledging tariff uncertainty and long-term high tariffs.
Sustained High Tariffs Impact Economy
- Tariffs with major trading partners will likely remain high for the foreseeable future.
- Economic growth and inflation forecasts must now account for this sustained tariff environment.
Volatility Fuels Alpha Opportunities
- Volatility presents investment opportunities including generating alpha by trading curve parts and different products.
- PIMCO also looks beyond the US market for opportunities, like Australian bonds hedged to USD.