US fixed income manager Pimco has registered into the Spanish regulator National Securities Market Commission (CNMV) to launch an office in Spain.
Pimco has announced that the new office will be based in Madrid but it has not revealed yet when it will officially open and start operating.
The firm’s Spanish division, led in the country by Juan Manuel Jiménez, recently strengthened its Iberian sales capabilities with the appointment of Ángel Molina as Spain head of distribution.
“Iberia is a fast growing market for Pimco and we are committed to strengthening our client servicing capabilities across the region as clients continue to look to Pimco to support their investment needs,” Pimco said referring to the launch.
Commenting on the current situation in Italy and in Europe more broadly, Pimco’s global fixed income chief Andrew Balls had warned last month on the risk of Italy loosing market access. According to the manager, fiscal policy’s plans and QE explain partly the current situation in the country.
“Given the levels of spread offered in Italy were not enough attractive to take risk, we were clever enough to avoid so,” Balls commented.
He continued: “We think it makes sense to be underweight European credit in general in case of a full-blown crisis in Europe. European risk assets might be affected if the situation in Italy worsen.”
An Italian default would have a negative impact on the nation’s bond and stock markets, possibly triggering regional contagion and sparking fears of another eurozone debt crisis.