PIMCO's fixed income CIO reduces risk on $1trn portfolios as he warns of recession in Europe

Favours EMD to mitigate rising rates

Tom Eckett
clock • 2 min read

Andrew Balls, global fixed income CIO at PIMCO, has said he is continuing to dial down risk across portfolios as issues such as China, rising populism and central bank policy continue to weaken the investment outlook.

Balls, who is CIO to the group's $1trn fixed income portfolios, said while the near-term political risks look manageable, pointing to the German and Italian elections, populism still remains a big risk for the investment outlook over the medium term. "If in the event of weaker growth in Europe we had a rise in populism and an election of a populist government, the governance issues in the eurozone would become a serious challenge. Populism remains a significant concern over the next three to five years." Another big risk to fixed income portfolios, Balls said, was the lessening centra...

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 Markets

How big an impact could global elections have on portfolio allocation in 2024?

How big an impact could global elections have on portfolio allocation in 2024?

US, UK and India main focuses

Investment Week
clock 19 February 2024 • 8 min read
Hotter than expected US inflation tempers Fed rate cut expectations

Hotter than expected US inflation tempers Fed rate cut expectations

Annual price growth falls to 3.1%

clock 13 February 2024 • 1 min read
Investors turn defensive in January as rate cut expectations change

Investors turn defensive in January as rate cut expectations change

State Street Risk Appetite index

clock 08 February 2024 • 1 min read
Trustpilot