One of the world’s largest investment managers, Pimco, has been openly talking about de-risking the portfolio. In this short video just published, Group CIO Dan Ivascyn shortlists some of the key risks on their radar, and how they are adjusting the portfolios to be able to weather a recession.
"We are becoming a bit more cautious, cautious toward underwriting quality, which has deteriorated, cautious regarding macro uncertainty that we see out there in the world, and high equity valuations. So what we want to do across portfolios is be active in these areas, remain close to fully invested, but in instruments that would weather these periods of dislocation, perhaps recession, well relative to other alternatives, with the ultimate goal of protecting client’s principal during difficult market environments."
You can access the short interview in full here: (VIEW LINK)