Mark Kiesel is PIMCO's Chief Investment Officer Global Credit

Comments from him crossing the wires (Bloomberg):

  • US economy is actually doing pretty well
  • PIMCO's base case is the Federal Reserve will hike in December
  • He sees inflation heading towards 2%
  • The market thinks inflation will be 1.3-1.4% ... We don;lt see that, not with output gaps closing
  • You want to own TIPS today
  • Defaults should be low outside of energy, market is pricing in too much default risk
  • Very good environment for credit
  • US is a 'Goldilock' economy
  • When Fed raises rates, don't expect rates to break out
  • Opportunities won't be in cash or equities