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المشهد العربي
Gross warns of credit market risks
Bill Gross, founder of Pimco and a major bond investor, warns of structural imbalances in the U.S. credit markets, where total public debt, real estate, and corporate debt amount to around $84 trillion, heightening risks associated with long-term borrowing. He also added that the surge in financing within the artificial intelligence sector temporarily boosts economic growth but also exerts inflationary pressures and is expected to lead to slower economic growth in the future. Gross advised investors to avoid long-term bonds, with the exception of short-term Treasury bills, emphasizing that the anticipated rise in yields will put pressure on profit margins and negatively impact the 20-year bond prices, leading to increased market volatility.
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