Pimco chief Dan Ivascyn says Fed will hike despite Trump criticism

NEW YORK (Reuters) – Dan Ivascyn, the group chief investment officer at bond giant Pacific Investment Management Co, on Tuesday called the high-yield bond market “one of our least favorite sectors” against the backdrop of a likely interest-rate increase by the U.S. Federal Reserve in December despite President Donald Trump’s criticism.

“They have been resilient versus equities. But more equity selling from here will begin to widen spreads in high-yield,” said Ivascyn, who helps oversee more than $1.72 trillion in assets under management. “High-yield is a sector prone to overshooting on the downside when investor sentiment shifts.”

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