Bloomberg Talks Anthony Crescenzi Executive Vice President at PIMCO Talks Bond Market
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Feb 3, 2025 Anthony Crescenzi, Executive Vice President at PIMCO, shares his expertise on the bond market and its recent signals following the Fed meeting. He discusses the current landscape, emphasizing attractive investment opportunities in high-quality securities. Crescenzi highlights the role of bonds as a defensive strategy amidst stock market volatility and navigates the challenges and intricacies faced over the past decade. The insights illustrate the importance of long-term strategies, especially in agency mortgage-backed securities.
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Certainty Amidst Uncertainty
- Businesses face uncertainty around trade, but regulations and taxation are more predictable.
- This reduced uncertainty is reflected in the drop in the NFIB's uncertainty index.
Target-Rich Bond Market
- Consider high-quality fixed income (A-rated and above) for yields between 5% and 7%.
- Explore diverse options like agency mortgage-backed securities or bonds from Mexico and Saudi Arabia.
Defensive Bonds
- The bond market expects the Fed to lower its policy rate to 4% and hold it for the rest of the decade.
- This offers a defensive approach as bonds could appreciate if yields drop.