When looking past the noise, we believe the data have continued to confirm our forecast for 2.2% core inflation in 2017.
A series of surprises on the French political scene have fueled investors’ unease.
Floating rate bank loans, which are typically the most senior debt in an issuer’s capital structure, have traditionally been considered more resilient than high yield bonds in the event of default. However, recent shifts in the bank loan market may challenge this historical norm.
Does détente mean the greenback has already peaked?
PIMCO’s Dan Ivascyn shares some of the high-conviction ideas the firm is currently emphasizing in portfolios.
How can the BOE justify doing nothing – holding interest rates steady and offering no strong view on the direction of monetary policy – while also increasing its growth forecasts, at a time when it already expects inflation to overshoot the target for the next three years?
The Fed kept rates on hold despite growing confidence that inflation will hit its 2% target.
We see little probability of high core inflation rates in the eurozone, but instead a gradual increase toward the ECB target of just below 2% over the next few years.
Many view the Dow’s rise above 20,000 as a sign of optimism about the long-term economic growth outlook for the U.S. Yet the bond market is sending a different signal.
Joachim Fels, global economic advisor, offers a closer look at the factors driving PIMCO’s forecast for global GDP growth (2.5%–3.0%) and inflation (2.0%–2.5%) in 2017.