PIMCO: How The Government’s Huge Debt Binge Means Corporates Will Rule In 2010

According to PIMCO’s Mark Kiesel, the key to understanding the bond market this year is to look at relative supply.

Namely, the US government is issuing an insane amount of debt, while corporates are deleveraging and issuing relatively little debt.

Thus we ought to be nervous about the ability of investors to absorb all that Treasury issuance, and confident that investors will snap up what (relatively) little corporate debt there is out there.

Surprisingly, Kiesel likes bank debt, where he still sees value, and precious little new issuance.

Check out Kiesel’s full presentation — >

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See Also:

• PIMCO Slams The Brakes On US, UK, And Corporate Bond Buying, Amid Massive Debt Binge
• Everbody Is Obsessed With PIMCO’s "New Normal"
• Rosenberg’s Themes For 2010: The Consumer Is Still Toast, Housing Is Down, And Everyone Is Delinquent On Everything