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He also warned that asset managers were facing increased scrutiny from regulators, as the authorities feared that some products might suggest a liquidity that did not really exist.A similar concern was voiced at the Swiss Pension Conference outside Zurich a few weeks ago.However, Joachim Fels, managing director and global economic adviser at PIMCO, warned that, while the banking system had become “much more stable” in recent years, it was now more vulnerable when it came to liquidity shocks, as banks were holding more capital in reserve.According to the results of PIMCO’s latest Secular meeting held on the long-term economic outlook each May, institutional investors are likely to continue to have to search for alternatives to traditional bonds in the years to come.PIMCO’s analysts predicted that the neutral, real base rate for government bonds in developed countries would hover around 0% over the next 3-5 years, once central banks found the “right level” to balance out investments and savings.“We have probably seen the bottom of the trough regarding interest rates in Europe now,” said Bosomworth.PIMCO’s analysts estimated that basic yield would only be increased by an inflation premium, most likely the 2% set by the European Central Bank as target inflation, and a duration premium of 0.5-1% for 10-year-bonds on average.Nevertheless, Fels said he did not anticipate a “great rotation” from bonds into equities, predicted by many in the current low-interest-rate environment.“Some investors shifted a part of their portfolios into equities, but volatility remains a problem for many,” he said.Bosomworth added that not all companies could “get money on the stock markets”, while governments had to continue to issue bonds.He pointed out that, even with low interest rates, there was still demand for government debt.Fels added: “Government bonds with low yields can be compared with an insurance premium, [where] investors pay for the low default risk.” The debate over institutional investors’ increasing role in providing finance for long-term projects has “steered in the wrong direction”, according to Andrew Bosomworth, managing director at PIMCO Germany.He said the term ‘shadow banks’, used for these investors by some critics and regulatory authorities, was an “exaggeration” and argued that institutional investors bore no resemblance to the unregulated banks for which it was coined decades ago.Austria’s finance minister recently repeated criticism voiced by the International Monetary Fund that unregulated institutional investors risked “distorting” the lending market.PIMCO’s Bosomworth, however, pointed out that, because banks could no longer provide capital on the same scale as they did before, “someone else has to step in”.
RelatedPosts Bale completes Tottenham return from Real Madrid Live stream Premier League, La Liga, Serie A on Showmax Pro this weekend Neymar bags two-match ban Neymar has been ordered to pay former club Barcelona £6.1 million (€6.7m) after the Paris Saint-Germain forward lost a lawsuit over an unpaid bonus.The La Liga champions confirmed in a statement on Friday that the Brazil forward’s claim to a £39.5 million (€43.6 million) bonus had been “fully dismissed”. Neymar left the Blaugrana for PSG back in 2017 for a world record fee of £201 million (€222m) but pursued a court ruling concerning the terms of the last contract he signed at the Nou Camp a year earlier.The 28-year-old had been linked with a return to the Nou Camp over the last year with a move close last summer, but the court ruling appears to have now ended any potential future move.A club statement read: “Barcelona expresses its satisfaction with the verdict announced today in relation to the lawsuit involving FC Barcelona and the player Neymar Jr regarding the amount of the signing bonus in the final renewal of the player’s contract.“The ruling has fully dismissed the player’s claim for payment of 43.6 million euros, and has accepted a large part of the defence presented by FC Barcelona, as a result of which the player must return 6.7 million euros to the club.“Since the player’s representative is entitled to appeal this decision, the club shall continue to fervently defend its legitimate interests.” The Santos academy graduate has two years remaining on his contract in the French capital.Neymar will hope to play a part in PSG’s efforts to break through and claim a maiden Champions League title.Injury prevented Neymar’s involvement in the knock-out stages of PSG’s last two campaigns.Though a last 16 victory over Borussia Dortmund, which saw Neymar score in the second-leg comeback at the Parc des Princes, has galvinised Thomas Tuchel’s group.Though Ligue 1 has been ended prematurely due to coronavirus, which will mean PSG are unable to play competitive matches before the last eight, which will resume on 12 August as part of an innovative mini-tournament in Lisbon. —Tags: BlaugranaLa LigaNeymarParis Saint-Germain
Franz Zhao, a Thornton student majoring in piano performance, strives for perfection as the principal cellist in the USC Thornton Concert Orchestra’s performance in Bovard Auditorium on Wednesday. Professor Michael Christ Power conducted the concert.Ralf Cheung | Daily Trojan
Tipp FM’s Stephen Gleeson caught up with Tipp manager Liam Kearns after the gameHowever that game at Cusack Park was overshadowed by an incident involving Tipp selector Shane Stapleton who has been taken to hospital.It’s reported Stapleton hit his head off the ground after he was involved in an incident with Clare’s Jamie Malone, who was shown a red card.Other results today from Division 2Roscommon 0-7 Down 0-12Cork 2-11 Louth 0-10Cork now top Division 2.Next up for Tipp is the visit of Meath to Semple Stadium in two weeks time. Tipp manager Liam Kearns says the Premier were lucky to get a share of the points in Ennis this afternoon.The sides finished all square at 11 points apiece.This leaves Tipp with a win, a draw and a defeat from their opening three games in Division 2 of the National Football League.