CHICAGO (Reuters) – A U.S. default is highly unlikely, but negotiations around the debt ceiling are expected to be protracted, Daniel Ivascyn, chief investment officer at U.S. bond giant Pacific Investment Management Co (PIMCO), said on Wednesday.
Speaking at a Morningstar investment conference in Chicago, Ivascyn said prolonged uncertainty around the U.S. debt ceiling could be a headwind for the economy, tightening credit conditions and increasing the chance of a recession.
(Reporting by Davide Barbuscia; Editing by Leslie Adler)
