HALISTER1: Pimco’s Corporate Picks in Asia Include HY, Some Chinese SOEs

Pimco’s Corporate Picks in Asia Include HY, Some Chinese SOEs

(Bloomberg) -- Pimco is seeking to “tilt our alignment to cheaper credit where we can find it,” as yields on 10Y USTs dropped further than anticipated, Luke Spajic, head of portfolio management for emerging Asia, says in a Hong Kong briefing for reporters.
  • Potentially attractive credits include “high yield when it gets cheap or emerging markets or some high-quality investment-grade credits”
  • Short-dated HY credit and “high quality” Chinese SOEs are among Pimco’s overweights in the corporate credit sector
    • Also favors selected Indian corporates, Korean quasi- sovereigns, and some Chinese private companies, such as technology- and Internet-related firms
  • In financials, Singaporean Tier 2 names, some Tier 2 Chinese bank credits, senior Indian bank debt
  • In HY, preferences include Indian and Philippine bonds, as well as some non-property investments in China
  • Indonesia, Sri Lanka, and probably names like Mongolia are among sovereign picks
    • Not planning on going long South Korea or Philippines sovereigns given current spread levels
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

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21429Z US (Pacific Investment Management Co LLC)

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Luke Spajic (Pacific Investment Management Co LLC)

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