The best opportunity in 20 years? PIMCO's Rob Mead on bond investing, timing & market conditions

Nov 5, 2025

Rob Mead, a managing director at PIMCO with 36 years in fixed income, shares his insights on the current bond market. He discusses the significance of timing and how 95% of a bond's return hinges on its starting yield. With PIMCO's new EARN ETF, he emphasizes opportunities for high returns despite falling term deposits. Mead explains the importance of active management in today’s volatile market and why equities investors should consider diversifying with bonds. He also offers practical advice for using ETFs in portfolio strategies.

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INSIGHT

Starting Yield Drives Bond Returns

Rob Mead says 95% of a bond's return is explained by its starting yield.
High starting yields today mean bonds can deliver strong returns and portfolio defence.

ADVICE

Use Short‑Term Yield ETFs Instead Of Term Deposits

Consider EARN as a liquid, short‑end bond solution that targets 0.75–1.25% above the RBA cash rate.
Use it as an alternative to falling term deposit rates for medium‑term cash allocations.

INSIGHT

Multiple Levers To Harvest Yield

Rob Mead lists levers: credit exposure, curve positioning, high‑quality RMBS/ABS and global opportunities.
Combining credit and rate exposure can raise returns while often lowering portfolio correlation.

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