Europe's Recovery Masks Fragility, Pimco Warns Bond Investors

The euro area’s current economic performance masks persistent underlying fragility and imbalances, meaning investors should be wary of the region’s riskier sovereign bonds, according to Pacific Investment Management Co.

In a counterpoint to the current optimism about the strength of growth, Pimco Executive Vice President Nicola Mai said in a report that while “things look good over the cyclical horizon, investors shouldn’t be complacent about the long-term outlook.”