PIMCO Shares 2Q09 Markets Outlook

Newport, Calif.-based Pimco has just issued its second-quarter outlook on the markets. The firm says it will “retain an emphasis on assets at the top of the economy’s capital structure.”

In terms of interest-rate exposure, the bond-fund shop is positioning itself slightly overweight with respect to duration in the United States and Europe. With rates expected to stay low, “We will likely retain yield-curve steepening strategies.”

Pimco managers do want to take advantage of attractively priced assets, such as high-quality agency mortgage pass-throughs and upper-tier non-agency mortgages and consumer asset-backed bonds, “which should get a boost from the Term Asset-Backed Securities Loan Facility.”