Bloomberg: Pimco is backed by covered bonds backed by Danish mortgages

NEW YORK (Reuters) – Pacific Investment Management Co. is one of the investors investing in Danish collateralized covered bonds, even though negative interest rates imply investor losses on certain bonds. announced Bloomberg Sunday.

"We love the asset class," said Peder Beck-Friis, portfolio manager and economist at Pimco in London, referring to the $ 500 billion market. "We are overweight, as we have been doing for a long time. And that has certainly not changed since some of them have become negative in terms of performance.

Bloomberg also cited data from Danske Bank (DANSKE.CO), Denmark's largest lender, has shown that asset-backed bond issuers offer up to six times more fixed-rate bonds per day than during a more normal cycle.

Bonds are "a triple A rated asset with relatively good liquidity," Beck-Friis said.

"Given this profile, it is actually a very good return," he said. "So I do not think that zero is anything special. As an investor, you look for the highest returns given the risk profile. The level of this may change over time but you must finally put your money somewhere, "said Beckberg, quoted by Bloomberg.