Halister News

(Bloomberg) -- The spread widening into peripheral bond market is opportunity to add to some existing positions as current nervousness is excessive compared with fundamentals, Nicola Mai, sovereign analyst at Pimco, says in a phone interview.

• Pimco still favors Spanish and Italian bonds
• It’s hard to predict how long the bond market volatility will last but move is probably part of general risk-off environment rather than related to any specific change in fundamentals
  • Quantitative easing from ECB and euro-zone recovery are still in place while lower oil prices play in favor of economy
• NOTE: BTP/Bund widest since July, attempts to narrow gap with FTSEMIB
• NOTE: Pimco has $1.43t of assets under management as of Dec. 31, 2015, according to its website