PIMCO CIO names 'carry trade of the decade'

Anna Fedorova
clock

PIMCO's CIO Mihir Worah has labelled shorting UK RPI 'the carry trade of the decade', as he sees inflation in the UK remaining below current expectations.

Worah, PIMCO's CIO for real return and asset allocation, is co-manager on the $110bn Total Return fund previously managed by Bill Gross, as well as lead manager on the $13.6bn Real Return fund. Speaking at the annual Morningstar UK Investment Conference, Worah said: "We have been overinvested in TIPS and European linkers, but if you want the carry trade of the decade, it is to be short UK RPI." Currently, UK CPI is at a historic low of 0% and is expected to turn negative at the next reading for April. RPI fell to 0.9% in March, but 10-year expectations are for the measure to rise to 3...

To continue reading this article...

Join Investment Week for free

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now

 

Already an Investment Week
member?

Login

More on Economics

Early Powell departure could be an 'unexpected gift' for EMs

Early Powell departure could be an 'unexpected gift' for EMs

Trump claims he will replace chair sooner

Eve Maddock-Jones
clock 01 July 2025 • 3 min read
BoE's Andrew Bailey: Pick-up in inflation makes outlook uncertain

BoE's Andrew Bailey: Pick-up in inflation makes outlook uncertain

UK inflation at 3.4%

clock 27 June 2025 • 2 min read
Jerome Powell warns of long term inflation if Trump settles on higher tariffs indefinitely

Jerome Powell warns of long term inflation if Trump settles on higher tariffs indefinitely

Policies' economic impacts ‘uncertain’

Eve Maddock-Jones
clock 25 June 2025 • 3 min read
Trustpilot