And another report from PIMCOSummary
° If yields are low and spreads are low, it’s logical to conclude that generic market beta returns are going to be low. But that does not mean that alpha expectations should be lowered as well.
° There’s potentially a lot of volatility coming our way and dispersion with winners and losers. And that creates a fertile environment for an active manager to hopefully generate alpha.
° It’s important to build portfolios that are resilient when the unexpected happens. PIMCO has a process of intentional diversification, looking for different sources of alpha.REPORT