PIMCO CIO names 'carry trade of the decade'

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...