PIMCO's latest global outlook has dropped.....>

BONDS: PIMCO's latest global outlook has dropped. Highlights:

- "The global economy is about to enter a low-growth "window of weakness," a

period we expect to persist into 2020... global rates markets price in

recession-like conditions already, while corporate credit markets and risk

markets more generally appear to price in better outcomes"

- Therefore "prudent to focus on capital preservation and to be relatively light

on top-down macro risk positions in our portfolios"

- U.S. Tsy duration "best source of 'hard' duration to hedge risk assets

- No high top-down conviction on curve positioning

- Cautious on corporate credit risk at tight valuations

- Structured credit (US non-agency mortgages/other RMBS) offers "relatively

attractive valuation, more defensive source of credit risk, less crowded sector"

- U.S. MBS offers reasonable valuation and carry (overweight)

- TIPS also offer value given recent underperformance and outlook for rising

core inflation and Fed that outweighs macro/market risks vs inflation risks

- Modest underweight in equities