NEW YORK, Feb 8 (Reuters) - U.S. bond manager Pacific Investment Management Company (PIMCO) is sticking to its previous forecast that the U.S. economy is headed toward a recession, despite recent data indicating economic resilience.
Tiffany Wilding, PIMCO North American economist, said the strong economic data suggests a recession may come later than previously expected, but remains likely.
PIMCO, which manages $1.7 trillion in assets, said last month it would focus on high-quality bonds this year due to their higher returns and the protection they offer should the global economy economic downturn be deeper than anticipated.
That rally, however, stumbled last week as the jobs data raised the prospect of more interest rate hikes by the Fed.
"Although market-based measures of financial conditions have eased somewhat recently, financial conditions are still tight by historical standards," Wilding said.