September 1, 2013
By Taimur AhmadGlobal financial markets will be marked by one principal feature in the years ahead: heightened volatility, as investors re-price risk in a world weighed down by macro and policy uncertainty.
That’s the view of Mohamed El Erian, chief executive and co-chief investment officer at Newport Beach, California-based Pimco, the world’s biggest fixed-income fund.
Fear gripped global markets in the early weeks of the summer after US Federal Reserve chairman Ben Bernanke made it clear the central bank intended to wind down its bond-buying program by year-end. What followed was a widespread re-pricing of risk – and an almost indiscriminate sell-off across credit markets.
Latin America will not escape global market volatility in the coming years, says Pimco chief executive Mohamed El Erian