Bond traders already had their hands full, ‘then a war breaks out’
Investors closed their books on a month of mounting artificial intelligence risks. Then a conflict in the Middle East raised a whole new set of worries.
Conflict has forced some of the world’s largest asset managers to reassess their assumptions and investment strategies. Bloomberg
Michael MacKenzie
Even before last weekend, Pacific Investment Management’s Daniel Ivascyn was preparing for turbulence.
With artificial intelligence-related jitters reverberating through markets and private credit tremors setting off alarms, the chief investment officer at Pimco and manager of the world’s largest active bond fund was making adjustments – reducing corporate credit and stockpiling cash-equivalent holdings that could be quickly sold to take advantage of any dislocations, while still favouring medium-dated Treasuries.
