外文报告：PIMCO-Europe Risk Preparedness-120725

Viewpoint
July 2012

William G. De Leon

Your Global Investment Authority
Europe Risk Preparedness
PIMCO continues to carefully monitor the economic and financial
stress in Europe. We have intensified our economic analysis,
portfolio analytics and testing to prepare for a wide range of
outcomes given the evolving nature of the eurozone.
In this interview, Bill De Leon, managing director and global head
of portfolio risk management, discusses how PIMCO’s commitment
to risk management, rigorous systems and deep experience with
counterparty and liquidity management contribute to our
commitment of protecting our clients’ portfolios.


Q: How is PIMCO's risk management process approaching events in the
eurozone?
De Leon: Our risk management practice goes beyond direct portfolio risk
implications and includes legal, compliance and operational preparations. We
conduct ongoing due diligence around processes and procedures that may need
to be modified or adapted for potential scenarios in Europe. In addition, we
enhanced our analytics and monitoring systems to accommodate a variety of
potential scenarios. Although events in Europe are different in many ways than
what we saw in the immediate fallout of the financial crisis, we put similar
processes in place in the wake of 2008 and have continued to build on them, an
approach we think helps us navigate risks, both known and unknown, on behalf
of our clients.
Because a triggering event in the eurozone may come in many forms, PIMCO’s
risk management process is dynamic and flexible, allowing us to evolve to
understand, quantify and manage risks in broad scope and at the portfolio level.
That said, we are particularly focused on preparation for multiple potential
scenarios. We do not mean to suggest that any of these have more or less of a
likelihood of playing out; rather, we view such preparation as part and parcel of
our commitment to our clients. These scenarios range from a one-country
redenomination with a bank holiday and capital controls put in place to a full
break-up into 17 separate currencies, with bank holidays and capital controls in
all countries.
I need to stress from the outset here that, as part of our ongoing monitoring of
events in the eurozone, where guidelines permit we have limited exposure to
many of the countries that we be lieve may be at most risk, and we also continue
to actively manage exposures to all securities that may be affected by events in
Europe.

William G. De Leon
Managing Director
Global Head of Portfolio Risk
Management