Pimco [profile] executives just can't stop talking about the Fed tapering. Pimco chief executive and co-chief executive officer, Mohamed El Erian spoke on recent Fed actions at the National Press Club in Washington DC, InvestmentNews' Mark Schoeff reports. Schoeff quotes El Erian as saying, "We are in a period where the Fed, not by choice but by necessity is using experimental policies that haven't been tested…It's like a doctor that gives you medicine--because she or he has to do it--that has not been clinically tested."

MoneyNews', Dan Weil writes that El-Erian also stated interest rates were unlikely to rise until at least 2016, though the tapering may begin new month.

Adding his voice to the fray, Scott Mather, head of global portfolio management at Pimco, said the selloff in Treasuries was overdone because markets misunderstood the Fed's statement on bond purchases, Bloomberg's Candice Zachariahs reports.

Mather told Zachariahs that, "We think it's more likely that the Fed is at zero for a couple of years and the markets are, in our view, overshooting in bringing forward rate hikes at a time when both inflation and growth are well below the Fed's targets."

Zachariahs writes that, according to Mather, the mutual fund giant favors strategies that take advantage of the surge both in the U.S. and globally, Mather was quoted as saying, "…so duration is attractive but curve is even more attractive in our view."

To read more, click here, here, and here. 

Edited by: Casey Quinlan


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