It must have been, what, a couple of days since someone from Pimco last fired a broadside at the UK?
So, the top man, Admiral Bill Gross, has now taken it upon himself to deliver another round of cannon fire.
And it’s heavy caliber. Via Reuters:
PIMCO’S BILL GROSS: THE U.K. IS A MUST TO AVOID, GILTS ‘RESTING ON A BED OF NITROGLYCERINE’
GROSS: GERMANY IS ‘THE SAFEST, MOST LIQUID SOVEREIGN ALTERNATIVE’
GROSS: WOULD ‘PREFER TO INVEST MONEY IN CANADA,’ CITING CONSERVATIVE BANKING, FISCAL RESTRAINT
GROSS: LOOK TO ‘SAVINGS-ORIENTED’ ECONOMIES WITH GROWING CONSUMERS, SUCH AS CHINA, INDIA AND BRAZIL
Oh and there’s also this rather cryptic comment.
In addition, its interest rates are already artificially influenced by accounting standards that at one point last year produced long-term real interest rates of 1/2 % and lower.
Those quotes come from Gross’s latest Investment Outlook – The Ring of Fire.
More on this to follow. Stay tuned.
Related links:
It’s over – FT Alphaville
Pimco makes it personal in the UK – FT Alphaville
Funds cut back on US and UK bond holdings – FT
PIMCO’s Gross: U.S. at risk of losing top AAA rating – Reuters