Pimco cuts junk debt

Bond manager's move is in contrast with rival BlackRock, which sees more room for junk bonds to strengthen

Wednesday 22 August 2012 at 17:00

Pimco, one of the world’s biggest money managers, is paring down its positions in high yield corporate debt, the best-performing US fixed income market in 2012.

Mark Kiesel, global head of corporate bond portfolio management at Pimco, said in a phone interview yesterday that he started cutting exposure to the so-called junk debt market several weeks ago.