Wednesday, April 2, 2008

Demand for U.S. bonds flagging as lenders eye corporate debt

Demand for U.S. bonds flagging as lenders eye corporate debt - Financial Week: "“The dollar is so weak,” said Giorgio Radaelli, chief strategist at Swiss-based wealth manager BSI. “A Treasury is not a safe haven any more.”

A number of major institutional investors, meanwhile, have signaled a desire to move away from government bonds. U.S. fixed income giant PIMCO, for example, says it plans “to shift from curve and duration to spread products”.

Put simply, this means shunning developed market government debt in favor of corporate credit and other riskier issues that produce greater yield. Pimco is one of the largest fixed income managers in the world with $746.3 billion in assets under management."

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