What are the challenges facing investors as the global economy enters the New Normal?
Mewbourne: The world is changing dramatically and very rapidly. Global growth patterns are shifting while the economic and financial crisis continues to play out. Ongoing deleveraging, massive government interventions and new regulations are causing dislocations in existing markets, while at the same time markets for new securities are developing. This presents complex challenges but also offers opportunities for investors. In the current economic and financial landscape, which PIMCO has dubbed the “bumpy journey to a New Normal,” governments have become increasingly involved in capital markets. Opportunities can emerge and disappear quickly among securities that did not exist prior to the crisis, such as FDIC-guaranteed bonds issued through the Temporary Liquidity Guarantee Program (TLGP). When first launched, they presented an opportunity to buy government-backed debt at very attractive yields. Similarly, certain asset-backed and commercial mortgage securities have been positively im
