Key takeaways: Public and private credit markets can both offer attractive investment opportunities that reward careful analysis across regions, sectors, and securities. As an active daily participant in both of these markets, PIMCO observes that there are key structural differences between them as well as significant sources of relative value differentiation today. Two concepts central […]

Federal Reserve policymakers closely watch core inflation data for signs of cooling, and June offered a second straight month of surprisingly low readings in the core Consumer Price Index (CPI). It rose just 0.06% in June, the softest pace since January 2021, meaning core inflation is now running at 3.3% year-over-year (according to the U.S. […]

Across developed market countries, the long-term fiscal outlook amid high and rising debt understandably raises concerns – but it shouldn’t raise alarms, in our view. While debt sustainability has worsened amid high interest rates and the aftermath of pandemic-era stimulus, we believe debt remains broadly sustainable. The reasons vary across developed economies: Some have regulatory […]

The European Central Bank’s (ECB) July monetary policy meetings tend to be uneventful, and this year proved no exception. The Governing Council (GC) kept policy rates unchanged at 3.75% on the deposit facility, and provided little guidance on future directions. According to President Christine Lagarde’s recent speech in Sintra, the strong labour market allows the […]

In one of the wildest plot twists in modern U.S. political history, President Joe Biden made official what had been increasingly speculated over the past few weeks: He withdrew from the 2024 presidential race and endorsed Vice President Kamala Harris. By Biden dropping out, the race for the presidency – as well as the race […]

The Federal Reserve on Wednesday kept interest rates on hold, as expected, while making modest, dovish changes to its policy statement, setting the stage for a potential rate cut in September. Still, Fed Chair Jerome Powell stopped short of signaling anything beyond September, instead emphasizing that policy committee discussions will be made meeting by meeting […]

Federal Reserve Chair Jerome Powell in his remarks Friday morning at the Jackson Hole Symposium signaled that interest rate cuts are coming. Specifically, he stated that “the time has come for policy to adjust.” The minutes of the Fed’s July meeting, released two days prior, offered a similar hint at policy easing soon to come. […]

China’s economic landscape is undergoing a profound transformation, marked by significant shifts in its growth engines. The evolving composition of China’s economic drivers is likely to have long-term implications for global economies and asset markets, necessitating a re-evaluation of which sectors and asset classes stand to gain or lose from these shifts. The country’s aggregate […]

Encouraged by recent economic data suggesting inflation might sustainably reach its 2% target next year, the European Central Bank (ECB) cut the deposit rate by 25 basis points to 3.50% but refrained from providing strong guidance on the future path of rates. The September rate cut, the second this year after June, reaffirms the ECB’s […]

Following its September meeting, the U.S. Federal Reserve announced its first interest rate cut since 2020 – and did it with a bang. The central bank lowered the policy rate by 50 basis points (bps) and slashed its forward rate projections. The new median projection sees the policy rate ending 2025 in the range of […]