Pimco Says Curve Inversion May Be Unreliable Recession Signal
- Yield curve isn’t as good an indicator as it once was: Browne
- DoubleLine’s Gundlach said the signal shouldn’t be ignored
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The inversion of another part of the U.S. yield curve is leading to growing calls about the likelihood of a U.S. recession. Bond giant Pimco says those concerns may be premature.
“There’s reason to believe that this time around, yield curve inversion may not be as good of an indicator as it has been in the past, particularly given the enormous amount of quantitative easing undertaken by global central banks,” said Erin Browne, a fund manager at Pacific Investment Management Co. in Newport Beach, California, speaking in an interview on Bloomberg Television.