Portugal benefit global debt downgrades United States Wang sweep us debt PIMCO backhand

In July the new Net 14 Jul Hong Kong Wen reported that the international rating agency Moody's noted that Portugal's economic growth is weak, debt burden, Portugal's sovereign rating lower levels, the euro fell against the dollar and yen. The world's largest bond fund company Pacific investment management company (PIMCO) indicates that, in order to avoid the risk, from the European bond market, over the past few months the company has to go into the United States bonds hedge.

Moody's downgraded Portugal's sovereign ratings, Aa2 to A1, pointed out that Portugal to 2011 budget launched more tightening economic policy, otherwise it will continue to adjust its rating. Euro, dollar and Yen, fell against the dollar fell to 1.2533 level.

Although Portugal's rating is downgraded, but rating is better "investment rating, Outlook stable" rating in the next 12 months will not be changed. Portugal's 10-year government bonds fell, yield rate 4 basis points to 5.48%, 2-year bond yield rate remains unchanged at 3.28%.

PIMCO global product management department head Fischer said: "when investors looking for funding for shelter, the United States Government bonds and dollars are the main beneficiaries, PIMCO also recommends purchase of Canada, Australia, China, Korea, Brazil and Mexico and other countries. ”

Fisher said the United States is still a haven of choice, the funds of the dollar remains the world's most important reserve currency, the euro in the short term is unlikely to replace the US dollar, the US debt as preset security assets.

The outbreak of the debt crisis in Europe and United States inflation at a low point in the past 40 years, driving the surge in us debt this year. According to IDB Merrill Lynch indices in the first half of the United States Government bond 5.9% rate of return on investment, since 1995, the performance of the year.

Fisher's comments and a "bond King," said the Grosse views. Grosse last month said, in view of the European financial crisis worsened, he has to look after us debt, buying us debt backhand.

According to the Web site displays, PIMCO Grosse s scale 2,340 billion of total return Fund (Total Return Fund), may hold the US debt ratio of 51%, is half a year to a maximum percentage, representing 36% in April, big l 15 percentage points; at the same time, the Fund holds outside the mature markets of United States bonds percentage dropped to 6%, since November last year a new low; the relative proportion of emerging market bonds rose to 9% of record high. Total return funds over the past year of return of 12%, performance is better than 6% of the same Fund.

Portugal's Central Bank also said that the second coming recession next year, the need for further consolidation of budgets. The Central Bank will Portugal this year growth forecast from the original 0.4% to 0.9%, mainly due to the strong growth in the first half, but will be next year's growth forecast from 0.8% to 0.2%.