Pacific Investment Management Company (PIMCO), a major U.S. bond giant, stated that due to the possibility of inflation complicating the Federal Reserve's decision to cut interest rates, the company is increasing its bond exposure in developed markets outside the United States. PIMCO expects that central bank policy easing will boost bonds in markets such as Australia, Canada, the UK, and the Eurozone, but due to the pressure of rising prices accompanying continued economic growth in the United States, the company is underweighting U.S. fixed income assets. According to PIMCO's asset allocation outlook report, global economic and market prospects indicate variations in development paths across regions and sectors. In the fixed income market, the company is increasing investments in certain countries outside the United States, where looser monetary policies this year may boost bonds. PIMCO remains optimistic about the corporate bond market, especially securitized credits, but is underweighting high-yield bonds due to increased default risks. Given signs of continued economic strength, PIMCO is positive about the U.S. stock market compared to other markets. However, PIMCO also stated that the length of time U.S. interest rates remain high may be longer than previously expected, which could eventually put pressure on economic sectors such as commercial real estate, corporate borrowing, and regional banks vulnerable to rising borrowing costs. This suggests that while the factors contributing to the resilience of the U.S. economy seem persistent, the risk of an economic downturn cannot be ruled out. Data shows that PIMCO is the world's largest bond brokerage firm, founded by Bill Gross, known as the "Bond King" in the industry. Since its establishment in Newport Beach, California in 1971, PIMCO has grown into a team of over 2150 professionals, with offices in 11 countries conducting business in North America, Europe, and Asia. The company serves institutions including corporations, central banks, universities, foundations, as well as public and private pension and retirement plans. The company also sets individual financial goals for advisors and individuals, from retirement planning to funding higher education.