Pimco’s Stafford on China’s Bond Market, Australia Strategy, ESG

The transcript discusses PIMCO's strategies and preparations for the inclusion of Chinese bonds in global indices, highlighting the potential market impact and volatility. It covers PIMCO's approach to credit risk, particularly in Asia, and addresses regulatory challenges in Australia. The transcript also explores PIMCO's ESG initiatives and the establishment of a new office in Taiwan. Finally, it emphasizes PIMCO's commitment to gender equality and leadership development.

What significant change is happening in April regarding Chinese bonds?

• They will be included in the Bloomberg Barclays Indices.

• They will be removed from global indices.

• They will be traded exclusively in China.

• They will be converted to digital currency.

How is PIMCO preparing for the potential volatility in global markets?

• By selling off all Asian assets.

• By preparing operationally and focusing on active management.

• By increasing investments in Japanese bonds.

• By avoiding investments in Chinese bonds.

What is a key focus for PIMCO in managing credit risk?

• Investing in all available Chinese bonds.

• Careful bottom-up credit analysis.

• Relying solely on passive management.

• Ignoring corporate debt defaults.

What regulatory challenges is PIMCO facing in Australia?

• Inability to open new offices.

• Lack of interest in ESG strategies.

• Restrictions on foreign investments.

• Superannuation fund exits and pricing competition.

What new initiative has PIMCO launched in Taiwan?

• A new office to engage with distribution clients.

• A new bond trading platform.

• A partnership with local banks.

• A digital currency exchange.

How is PIMCO incorporating ESG into its strategies?

• By integrating ESG into fixed income and credit selection.

• By investing only in European markets.

• By avoiding all ESG-related investments.

• By focusing only on equity investments.

What is PIMCO's approach to promoting gender diversity?

• Hiring only from within the company.

• Promoting women to leadership roles and focusing on cognitive diversity.

• Ignoring diversity in investment decisions.

• Focusing solely on male leadership.