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Pimco Says Case for Subzero Yields Is Intact Despite Inflation
The consensus on Wall Street has reached a roar: U.S. interest rates have nowhere to go but up. Virtually drowned out in the noise is the voice of Pacific Investment Management Co.’s Joachim Fels, who in 2019 predicted that U.S. rates could even go negative as people save more and enjoy longer retirements. His case helped convince former Federal Reserve Chair Alan Greenspan that Treasury yields could dip below zero. Despite raging inflation, looming Fed hikes and rising long-term Treasury yields, Fels says his theory is alive and well. “This is not the beginning of a new paradigm or a world of permanently higher ... (full story)