PIMCO manager lists UK banks, Chinese bonds as opportunities for 2019


Geraldine Sundstrom, a portfolio manager with PIMCO, pointed out in an online video three investment ideas for investors who seek to grow returns as market volatility increases.

Firstly, and because of such volatility, some opportunities “unduly suffered” recently like the master limited partnership (MLPs) in the midstream energy sector in the U.S. (storage, pipelines) which is “likely to see good growth” and provides “a dividend yield approaching eight percent”.

Secondly, fears of a no-deal Brexit have widened UK bank spreads despite good capital situation, good resilience and “a relatively low probability to such an outcome”.

Thirdly, so-called economic slowdown in China has widened spreads of dollar denominated bonds (BB, B) of larger Chinese property developers that could offer “relatively attractive returns” with a yield of seven to nine percent.