Pimco Buying Emerging Market ‘Rising Stars’ as Inflation Looms

Bloomberg reports:

Pacific Investment Management Co. says investors should buy company debt in Russia, Brazil and other emerging markets where rising wages and relatively low public and private debt will help borrowers weather accelerating inflation.

The manager of the world’s biggest bond fund is buying debt of “rising stars” linked to nations with expanding wealth because they will more easily be able to pass on higher materials costs, Mark Kiesel, Pimco’s global head of corporate bond portfolio management, wrote in a report today on the firm’s website. At the same time, he’s avoiding companies dependent on growth in Europe, the U.S. and Japan that will struggle amid stagnant wages and debt-laden governments and consumers.

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