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PIMCO’s Outlook and Monthly Income Fund Canada Update Event Takeaways

Three reasons why bonds are back:

1. Following a challenging year, 2023 could deliver renewed opportunities to bonds. Historically, years with capital losses have been followed by capital gains. 2022 was one of the worst years in the bond market in almost 100 years, so it is reasonable to expect some strong returns on the horizon.
   
   
2. Elevated yields could dictate better future returns. Historically, starting yields have had a 94% correlation with prospective returns.* With today’s yields at a much higher starting point, we think this is a compelling environment that may benefit investors over the long term.
   
   
3. Volatility Creates Opportunity. When markets are volatile, the Monthly Income has traditionally taken advantage by actively repositioning portfolios, resulting in strong returns when coming out of these volatile periods. PIMCO works to put our size, scale and resources to work on behalf of clients during periods of heightened market volatility. 
   
   * Source: Bloomberg/PIMCO, Based on US Agg Bond Index

To view the event material, click here. Note that the event is not available for replay.

Rich Clarida
Former Vice Chair of the Federal Reserve