What's up everyone. We are doing a contest with T.I. and we are giving away $1200 a day for the next 10 days. Just wanted to give you all a heads up.

Get Your Money Right

dc's teflondon
dc's teflondon Members Posts: 5,895 ✭✭✭✭✭
edited January 2010 in Strictly Business
Pimco Says Better Corporates Than Treasuries
Posted by Tiernan Ray

Heck, it’s never too late for a year outlook piece. Hence, today’s article from Pimco portfolio manager Mark Kiesel, who argues corporate bonds are a better investment this year than Treasuries.

With technical indicators suggesting strong demand for fixed income, improving corporate balance sheets will make corporate bonds more attractive this year. Conversely, the U.S. Treasury keeps issuing more debt, raising supply, and the foreigners who’ve bought half the $1.9 trillion issued in the last 12 months can’t be expected to stand firm in their appetite for T-bills.

On the other hand, Gluskin Sheff’s David Rosenberg this afternoon remarks in a phone conversation that while corporates are fine, there’s nobody who shouldn’t have Treasuries in their portfolio. Treasuries are absolutely not going to default, despite the worries over U.S. credit risk — “The U.S. government is not going to default, it’s zero risk” — and yields of 3.85% or so for zero risk are pretty darned good, he figures.