Pacific Investment Management Co. expects Germany to lose its status as a safe haven and has reduced the amount of the country’s sovereign debt it holds, WirtschaftsWoche reported, citing Andrew Bosomworth, who leads Pimco’s operations in the country.
Germany will have to pay whether the euro zone survives the debt crisis or not, either in contributions to rescue funds and joint debt liability or to reduce the impact of an ensuing recession and to rescue lenders, the German publication cited Bosomworth as saying.
Pimco has switched its focus to bonds from the US, the U.K. and Scandinavia, Bosomworth was cited as saying.
To contact the reporter on this story: Cornelius Rahn in Frankfurt at firstname.lastname@example.org
To contact the editor responsible for this story: Kenneth Wong at email@example.com