HIMCO have been making public statements and hitting media outlets, Bloomberg TV for example, with comments that investors can get equity-like returns by investing in short-term publicly traded bonds, which are generating yields of 6% to 8%.
- “We haven’t seen this return potential in bonds in 14 years,” Mark Kiesel, PIMCO’s chief investment officer for global credit, in an Bloomberg TV interview
- “We don’t think these yields will be here a year from now.” Agency mortgage-backed securities, in particular, present the best opportunity and can provide steady income even if the Fed stops raising rates for the cycle, PIMCO Chief Investment Officer Dan Ivascyn said. The “most attractive asset is agency mortgages,” Ivascyn said, noting that they’re trading at “record-wide spreads.”
PIMCO aren't the only ones shouting this.
Here is a Bloomberg link, Bloomberg is gated of course.
