An investment chief overseeing $100 billion at Pimco says beware of the 'riskiest corporate market we've ever had' — and offers these strategies for surviving the next recession

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Scott Mather, the CIO of US core strategies at Pimco, explains how investors should be positioned so they're not blindsided by the next recession.

That doesn't mean he's overly bullish on the prospect of the economy expanding for another couple years. He's also not joining the chorus of doomsayers predicting an imminent collapse. He resides in the neutral zone characterized by a wait-and-see approach.

But Mather refuses to sit idly by and wait for a major economic downturn to stare him in the face. He and his portfolio management team — which oversees roughly $100 billion in assets — are already positioning in a more conservative manner.The world's greatest investors and economists spent much of Milken dispelling 3 key misconceptions. Here's what they said to set the record straight.

"We've described this as the riskiest corporate market we've ever had," Mather told Business Insider."A lot of people don't recognize that. But it is that way, because it's doubled in size in the past decade, because everybody's levered up." "We're stressing defensive themes. We don't think people have gone back to neutral, even though rates have somewhat normalized now. To us, that means, if you're a fixed-income investor,avoiding things like low-quality high yield and low-quality leveraged loans.

 

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