Bill Gross' Pimco, the world's largest bond manager, has made a $8.1bn bet the US will not suffer a decade of deflation similar to Japan in the 1990s.
Pimco is bringing two of its giant institutional funds into the UK retail space for the first time with the launch of a new product range.
Pimco's Ketish Pothalingam says increased M&A activity could end this year's sterling bond issuance drought.
Pimco's Bill Gross says there will be no housing-led recovery in the US without Government support.
A year ago, a key concern for investors was the level of national debt inherent in many developed economies.
Pimco, the world's biggest bond manager, has turned bullish on UK government debt, just six months after it warned gilts were resting "on a bed of nitroglycerin".
PIMCO has warned the global economy faces the threat of rising inflation, driven partly by central banks using it as a solution to fiscal deficits.
Developed countries cannot rely on emerging markets to bring global growth back to pre-crunch levels, says PIMCO's Bill Gross.