It is interesting when a firm as well entrenched as PIMCO uses terms like “toxic”. From Bloomberg:
European government bonds with the exception of German securities are today’s “toxic debt” as the region struggles to contain fiscal turmoil, according to Pacific Investment Management Co.’s Tony Crescenzi. The European Central Bank isn’t likely to follow the example of the Federal Reserve in purchasing government bonds to keep interest rates low, said Crescenzi, executive vice president at Newport Beach, California-based Pimco, in an interview today on Bloomberg Radio with Sara Eisen. The euro is likely to remain weaker, according to Crescenzi.