PIMCO CEO sees investment opportunities in distressed credit - Financial Post | Canada News Media
Connect with us

Investment

PIMCO CEO sees investment opportunities in distressed credit – Financial Post

Published

 on


NEW YORK — The damage done to the U.S. economy by the coronavirus pandemic will create opportunities for investors in distressed credit, PIMCO Chief Executive Emmanuel Roman said at the Bloomberg Invest Global conference on Tuesday.

Roman is not expecting U.S. gross domestic product to return to 2019 levels until the end of 2021. The next 18 months are therefore a time when investors can secure positions in businesses and credit at low prices, he said.

“Distress is a long cycle, and the need to deploy capital to restructuring situations is actually an opportunity to deliver outsized returns,” said Roman. “It is something that we are focusing on.”

S&P Global Ratings Research estimates that the global default rate for speculative-grade companies will rise to 12.5% by March 2021, from 3.5% as of March 2020.

Earlier this year, Bloomberg reported that PIMCO was seeking to raise up to $3 billion for a distressed debt fund, its largest ever. The Newport Beach, California-based Pacific Investment Management Co (PIMCO) has $1.78 trillion in assets under management.

The path to recovery for some U.S. companies has been and will continue to be aided by the Federal Reserve’s stimulus operations, said Roman, noting that the bank’s pledged support is ultimately more important than what it actually purchases. Issuance of new investment-grade corporate bonds has broken records this year and in May hit $1 trillion, a threshold not breached in 2019 until November.

Roman said the firm had no plans to acquire rival fund managers, and said that mergers would be scarce while meetings were still largely virtual.

“I think when people talk on Zoom, it is not easy to do mergers. Until we get back to face-to-face meetings, I don’t think you’ll see very many mergers. I think at some point you need to break bread and look each other in the eyes and say ‘this is something I want to do.’” (Reporting by Kate Duguid in New York Editing by Chizu Nomiyama and Matthew Lewis)

Let’s block ads! (Why?)



Source link

Continue Reading

Investment

S&P/TSX composite up more than 100 points, U.S. stock markets mixed

Published

 on

 

TORONTO – Canada’s main stock index was up more than 100 points in late-morning trading, helped by strength in base metal and utility stocks, while U.S. stock markets were mixed.

The S&P/TSX composite index was up 103.40 points at 24,542.48.

In New York, the Dow Jones industrial average was up 192.31 points at 42,932.73. The S&P 500 index was up 7.14 points at 5,822.40, while the Nasdaq composite was down 9.03 points at 18,306.56.

The Canadian dollar traded for 72.61 cents US compared with 72.44 cents US on Tuesday.

The November crude oil contract was down 71 cents at US$69.87 per barrel and the November natural gas contract was down eight cents at US$2.42 per mmBTU.

The December gold contract was up US$7.20 at US$2,686.10 an ounce and the December copper contract was up a penny at US$4.35 a pound.

This report by The Canadian Press was first published Oct. 16, 2024.

Companies in this story: (TSX:GSPTSE, TSX:CADUSD)

The Canadian Press. All rights reserved.

Source link

Continue Reading

Economy

S&P/TSX up more than 200 points, U.S. markets also higher

Published

 on

 

TORONTO – Canada’s main stock index was up more than 200 points in late-morning trading, while U.S. stock markets were also headed higher.

The S&P/TSX composite index was up 205.86 points at 24,508.12.

In New York, the Dow Jones industrial average was up 336.62 points at 42,790.74. The S&P 500 index was up 34.19 points at 5,814.24, while the Nasdaq composite was up 60.27 points at 18.342.32.

The Canadian dollar traded for 72.61 cents US compared with 72.71 cents US on Thursday.

The November crude oil contract was down 15 cents at US$75.70 per barrel and the November natural gas contract was down two cents at US$2.65 per mmBTU.

The December gold contract was down US$29.60 at US$2,668.90 an ounce and the December copper contract was up four cents at US$4.47 a pound.

This report by The Canadian Press was first published Oct. 11, 2024.

Companies in this story: (TSX:GSPTSE, TSX:CADUSD)

The Canadian Press. All rights reserved.

Source link

Continue Reading

Economy

S&P/TSX composite little changed in late-morning trading, U.S. stock markets down

Published

 on

 

TORONTO – Canada’s main stock index was little changed in late-morning trading as the financial sector fell, but energy and base metal stocks moved higher.

The S&P/TSX composite index was up 0.05 of a point at 24,224.95.

In New York, the Dow Jones industrial average was down 94.31 points at 42,417.69. The S&P 500 index was down 10.91 points at 5,781.13, while the Nasdaq composite was down 29.59 points at 18,262.03.

The Canadian dollar traded for 72.71 cents US compared with 73.05 cents US on Wednesday.

The November crude oil contract was up US$1.69 at US$74.93 per barrel and the November natural gas contract was up a penny at US$2.67 per mmBTU.

The December gold contract was up US$14.70 at US$2,640.70 an ounce and the December copper contract was up two cents at US$4.42 a pound.

This report by The Canadian Press was first published Oct. 10, 2024.

Companies in this story: (TSX:GSPTSE, TSX:CADUSD)

The Canadian Press. All rights reserved.

Source link

Continue Reading

Trending

Exit mobile version