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Keyword: pimco

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  • Boss at $2 trillion investment firm PIMCO says 10-year-old daughter made him quit

    09/29/2014 3:27:23 PM PDT · by Lorianne · 13 replies
    Fox News ^ | 27 September 2014
    The CEO of a $2 trillion investment fund said he made the decision to resign from his post after his young daughter wrote him a note listing 22 milestones he had missed in her life. California-based Mohamed El-Erian left his job as chief executive of PIMCO in mid-March. The 56-year-old El-Erian, who made $100 million in 2011 alone, chose to leave his post after his 10-year-old daughter wrote about all the special moments he was absent for in her life.
  • Billions fly out the door at Pimco (Bill Gross)

    09/29/2014 4:48:27 AM PDT · by MeneMeneTekelUpharsin · 13 replies
    Market Watch ^ | 29 September 2014 | Kirsten Grind, Gregory Zuckerman and Min Zeng
    Pacific Investment Management Co. suffered roughly $10 billion of withdrawals following the Friday departure of co-founder Bill Gross, a person familiar with the matter said, a sign of how quickly Mr. Gross’s surprise move is reshaping the bond-investing landscape. Pimco is bracing for more outflows on the heels of the veteran investor’s departure after months of internal strife over his leadership. At the same time, some managers say they remain committed to the firm. Some within the Newport Beach, Calif., investment firm are projecting it will lose at least $100 billion or more in assets due to withdrawals, the person...
  • Pimco Founder and Bond Guru, Bill Gross Quits Firm for Janus Capital

    09/26/2014 6:13:02 AM PDT · by SeekAndFind · 16 replies
    TIME ^ | 09/26/2014 | Laura Lorenzetti
    Bill Gross, who co-founded Pacific Investment Management, or Pimco, in 1971, will leave his own firm to join competitor Janus Capital. Gross served as the firm’s chief investment officer and managed the Pimco Total Return fund — one of the world’s largest bond funds with more than $1.9 trillion in securities, according to the company’s website. The fund has not done well for years, though, and has been plagued by huge outflows. “I look forward to returning my full focus to the fixed income markets and investing, giving up many of the complexities that go with managing a large, complicated...
  • Did Derivatives Cause Bond Fund Giant, PIMCO's $2 Trillion Divorce?

    02/28/2014 8:11:51 AM PST · by SeekAndFind
    American Thinker ^ | 02/28/2014 | Chriss Street
    The Wall Street Journal on February 25th published a story about December’s messy corporate divorce between Bill Gross and Mohamed El-Erianas, co-Chief Investment Officers at Pacific Investment Management Company (PIMCO), the world’s largest bond fund with almost $2 trillion in assets.  The article focused on the prickly personality of Gross and foul language complaints by El-Erian during a period of stress last summer when the firm was suffering market losses and clients were withdrawing billions.  But despite a carefully crafted image of a traditional conservative bond manager for “serious” money, PIMCO has magnified returns by making trillions of dollars in high-risk...
  • Agency MBS Index Earned -0.55% Over Past Year As Fed Purchases $40 Billion Per Month

    12/13/2013 8:18:40 AM PST · by whitedog57 · 1 replies
    Confounded Interest ^ | 12/13/2013 | Anthony B. Sanders
    The Federal Reserve currently purchases $40 billion per month in an effort to keep mortgage rates low and stimulate the housing market recovery (or bubble?). Over the past year, the RMBS index has earned -0.55% in spite of (or because of) The Fed’s $40 billion per month in agency RMBS purchases. And if we compare the BRMBS index to PIMCO’s vaunted total return fund, you will see similar performance until September 2013 when RMBS rallied in terms of price compared to PIMCO’s Total Return Fund. So, despite The Fed’s $40 billion of agency MBS per month, the Bloomberg MBS index...
  • Eminent Domain For Negative Equity Borrowers: ACLU Versus PIMCO And FHFA (Hockett To 'Em, Baby!)

    11/16/2013 11:15:16 AM PST · by whitedog57 · 4 replies
    Confounded Interest ^ | 11/16/2013 | Anthony B. Sanders
    The eminent domain steamroller is gaining momentum. Irvington NJ now joins Richmond CA in the effort to seize the mortgages of underwater borrowers and reduce their debt. Other cities are moving forward (or backward) in the eminent domain derby. Newark NY, Pomona and Oakland CA are moving forward. Other cities are considering studies to seize mortgages such are two in Pennsylvania and a cities in Minnesota, according to Robert Hockett, a Cornell University law professor and one of the architects of the strategy. He should be nicknamed “Hockett to ‘em”. robert_hockett-inside-small Who is the “‘em” that Hockett want to sock...
  • Wealthy didn't 'build that,' they 'rode it,' says Gross

    11/04/2013 2:06:16 PM PST · by Tailgunner Joe · 20 replies
    cnbc.com ^ | November 04, 2013 | Robert Frank
    In his latest Investment Outlook, titled "Scrooge McDucks," the outspoken Pimco co-founder said that with tax reform back on the radar, the focus should be on taxing the wealthy. Yes, he knows the rich work hard. And yes, he knows they pay an outsized share of the taxes. But Gross said the wealthy really didn't earn all of their wealth. They are lucky beneficiaries of a decades-long credit boom that poured money into the hands of the financially skilled. "You did not, as President Obama averred, 'build that,' you did not create that wave," he wrote. "You rode it. And...
  • IMF Suggests US Regulators Boost Oversight On Large Mortgage REITS (But Not PIMCO)

    10/09/2013 12:52:52 PM PDT · by whitedog57 · 1 replies
    Confounded Interest ^ | 10/09/2013 | Anthony B. Sanders
    Regulators should boost oversight of the largest real-estate investment trusts that use borrowed money to invest in mortgage-backed securities because rising interest rates may push the firms into asset sales that destabilize markets, the International Monetary Fund said. A version of that scenario occurred during the rise in rates that began in May, the IMF said. Repercussions might roil the REITs’ lenders, disrupt the $5.3 trillion market in which they invest and damage the broader U.S. economy, according to its Global Financial Stability Report released today. Here is the report. Mortgage REITs have suffered since the May 1 surge in...
  • Fed: Forward Guidance Or Crony Capitalism? (The Case Of PIMCO)

    09/27/2013 9:26:35 AM PDT · by whitedog57 · 2 replies
    Confounded Interest ^ | 09/27/2013 | Anthony B. Sanders
    Carrick Mollenkamp had an interesting piece today called “Special Report: Pimco shook hands with the Fed – and made a killing.” In short, the fund-management firm, led by co-founder Bill Gross, started buying tens of billions of dollars in mortgage-backed securities guaranteed by federally sponsored agencies like Fannie Mae and Freddie Mac. In the third quarter of 2011 alone, Pimco’s flagship Total Return Fund, the world’s largest mutual fund, doubled its holdings of these securities to $80 billion, according to a Reuters review of trading and other data. While Pimco was building its hoard, the Fed, in a surprise move...
  • Richmond, California, Advances Eminent Domain Plan To Help Homeowners (Who Squandered Cash-outs)

    09/11/2013 2:29:16 PM PDT · by whitedog57 · 9 replies
    Confounded Interest ^ | 09/10/2013 | Anthony B. Sanders
    Richmond California is proceeding with plans that include eminent domains to help homeowners with “troubled loan.” Richmond, California, took a step toward setting up a mortgage principal reduction program to help homeowners with troubled loans, while leaving the door open to using its eminent domain powers to acquire the debt. The City Council refused to shelve a plan to seize mortgages that exceed the value of their properties, which has spurred lawsuits by U.S. banks including Wells Fargo & Co. The council agreed that any effort to acquire loans though eminent domain — the right of governments to take private...
  • New Bank of England chief Carney will devalue sterling, PIMCO warns

    06/01/2013 4:47:53 AM PDT · by Olog-hai · 4 replies
    Daily Telegraph (UK) ^ | 1:18PM BST 29 May 2013 | Philip Aldrick
    Mark Carney will try to devalue the pound by as much as 15 percent after he takes over as Bank of England Governor in July in a last ditch attempt to cement the UK recovery, PIMCO, the world’s largest bond house, has warned. Growth in Britain is going to remain “challenged” for the next three to five years as the Government continues to shrink the public sector and cut the budget deficit. As banks and households also grapple with their excessive debts, “that leaves one policy tool outstanding, which is basically the currency”, PIMCO managing director and sterling bond head...
  • There Will Be Haircuts (Bill Gross)

    05/01/2013 7:23:44 AM PDT · by blam · 17 replies
    Pimco.com ^ | 5-1-2013 | William Gross
    There Will Be Haircuts William H. GrossMay 1, 2013 “Good as Money,” proclaimed the ad for Twenty Grand Cognac. Being a beer drinker, and never having cashed in a Budweiser to pay for a fill-up at the local gas station, I said to myself “Man, that must be really good stuff!” Even in a financial meltdown I thought, you could use it in place of cash, diamonds, gold or Bitcoins! And if the Mongol hordes descend upon us during a future revolution, who wouldn’t prefer a few belts of Twenty Grand on the way out, instead of some shiny rocks...
  • BILL GROSS: Investment Banks Have Morphed Markets With 'Ponzi Finance' — And Time Is Almost Up

    01/31/2013 2:34:03 PM PST · by blam · 3 replies
    TBI ^ | 1-31-2013 | Matthew Boesler
    BILL GROSS: Investment Banks Have Morphed Markets With 'Ponzi Finance' — And Time Is Almost Up Matthew BoeslerJanuary 31, 2013, 9:52 AMBill Gross, the PIMCO fund manager known as the "Bond King," is out with his February investment letter, titled "Credit Supernova!" This month, Gross tackles the relationship between credit expansion and real growth. He channels the late economist Hyman Minsky, saying the economy is now in Minsky's "Ponzi finance" phase, "when additional credit would be required just to cover increasingly burdensome interest payments, with accelerating inflation the end result." Gross writes that new credit is providing diminishing returns: "Each...
  • Obama's Crony Capitalism (PIMCO Management Now in Bed with the White House)

    01/08/2013 7:13:30 AM PST · by SeekAndFind · 7 replies
    Reason ^ | 01/08/2013 | Ira Stoll
    On the Friday before Christmas, President Obama announced that he was appointing Mohamed A. El-Erian, the CEO of Pacific Investment Management Company, as the chairman of his Global Development Council. The announcement didn’t get much attention, but it should. It exemplifies what’s wrong with Obama’s approach to economic policy, which amounts to: insult rich people as “fat cats,” raise their taxes, and then choose a favored few of them for special access. If you’re not familiar with El-Erian, you must not be watching CNBC or attending the World Economic Forum at Davos. The son of an Egyptian ambassador to France...
  • Stocks dead, bonds deader till 2022: Pimco

    11/28/2012 11:00:14 AM PST · by ExxonPatrolUs · 12 replies
    MarketWatch ^ | Nov 27, 2012 | Paul B. Farrell
    SAN LUIS OBISPO, Calif. (MarketWatch) — Big money managers are warning investors. They’re now citing the Bible: “Seven lean years.” No recovery till 2016. That was Jeremy Grantham back a few years ago. His GMO firm manages $104 billion. Now Bill Gross and Mohamed El-Erian, the co-CEOs at the $2 trillion Pimco money managers, are citing the same biblical warning to jar investors awake and prepare for the coming lean years of slow, low growth and austerity. Except in Pimco’s new warning, the future just got much, much darker for investors — no recovery until 2022. Earlier in the summer...
  • PIMCO: 'THE US WILL GET DOWNGRADED'

    10/18/2012 6:18:05 AM PDT · by blam · 10 replies
    TBI ^ | 10-18-2012 | Rob Wile
    PIMCO: 'THE US WILL GET DOWNGRADED' Rob WileOctober 18, 2012 PIMCO has seen enough of the federal government's "fiscal theatre" and now says the U.S.'s credit rating will inevitably be slashed, Bloomberg's Tracy Withers reports. “The U.S. will get downgraded, it’s a question of when,” Withers quotes Scott Mather, Pimco’s head of global portfolio management, as saying. “It depends on what the end of the year looks like, but it could be fairly soon after that.” If President Obama is reelected, Mather said, it's likely resolution of the country's deficit “doesn’t happen in a nice way, and we have disruption...
  • Bill Gross the “Bond King” says Buy Gold, Not Bonds

    09/11/2012 8:29:15 PM PDT · by dennisw · 20 replies
    washingtons ^ | September 10, 2012 | Washingtons
    Bill Gross Says that Gold Holds Its Value, While – In an Era of Central Bank Money Printing- Paper Money Doesn’t Bill Gross – the world’s pre-eminent bond fund manager, nicknamed the “Bond King” – is the boss at Pimco, the world’s largest bond fund, with $1.8 trillion dollars under management. Gross told Bloomberg: [There's] a diminished or dying cult of both bonds and stocks from the standpoint of a belief that they can return 10% …. Gold can’t be reproduced. It could certainly be taken out of the ground in an increasing rate but there’s a limiting amount of...
  • Pimco's Gross Sees US Nearing Recession as BlackRock Sees Fed Step

    07/17/2012 7:31:09 AM PDT · by Qbert · 4 replies
    MoneyNews ^ | 17 Jul 2012 | MoneyNews
    Bill Gross, who runs the world’s largest mutual fund at Pacific Investment Management Co., said the U.S. is approaching a recession as BlackRock Inc. expects the Federal Reserve to take more steps to support growth. Five-year Treasury yields slid to a record 0.577 percent Monday after an unexpected drop in U.S. retail sales rekindled speculation Fed Chairman Ben S. Bernanke will use testimony Tuesday to hint at further monetary easing. That followed data earlier this month showing American employers added fewer-than-estimated workers to payrolls. Goldman Sachs Group Inc. and Deutsche Bank AG cut forecasts for U.S. growth. The U.S. is...
  • El-Erian Explains Why Spain Desperately Needs To Avoid The 'Roach Motel' Of Outside Funding

    06/07/2012 7:26:48 AM PDT · by TigerLikesRooster · 1 replies
    TBI ^ | 06/06/12 | Mamta Badkar
    El-Erian Explains Why Spain Desperately Needs To Avoid The 'Roach Motel' Of Outside Funding After months of resisting external aid, Spanish budget minister Cristobal Montoro said European institutions should help shore up the nation’s lenders. In fact reports suggest that there is a plan in place that would allow Spain to recapitalize its weakest banks with help from European partners. But in a Financial Times editorial, PIMCO's Mohamed El-Erian says there's a reason Spain had long avoided emergency European funding: "So far, emergency European funding has been impossible to exit, like a “roach motel”.
  • PIMCO's Gross warns of economic "breaking point"

    06/01/2012 9:47:21 AM PDT · by SaraJohnson · 7 replies
    Reuters ^ | 5/31/12 | Sam Forgione
    The debt crisis and central bank policy responses have degraded the quality and value of debt markets and signal a "potential breaking point" in the global economy, PIMCO's Bill Gross, manager of the world's largest bond fund, said in his monthly letter to investors. In his June outlook entitled "Wall Street Food Chain," Gross said stimulus policies by the Federal Reserve and the European Central Bank have led to riskier government bonds with lower value and paved the way for higher inflation.
  • PIMCO chief Mohamed El-Erian expects 'second Greece’ in Portugal

    03/18/2012 4:53:34 PM PDT · by DeaconBenjamin · 12 replies
    Telegraph (UK) ^ | 10:32PM GMT 18 Mar 2012 | By Ambrose Evans-Pritchard
    The giant bond fund PIMCO said Europe has not yet tamed its debt crisis and will soon face a “second Greece” in Portugal as the country’s economy spirals downwards. Mohamed El-Erian, PIMCO’s chief executive, said Portugal will need a second rescue as the original package of €78bn falls short, setting off a political storm over EU rescue costs. “Unfortunately, that is how it will be. It will make the financial markets nervous because they are worried about a participation of the private sector,” he told Der Spiegel. German finance minister Wolfgang Schäuble insists that there will be no further haircuts...
  • BILL GROSS: 'We Are Witnessing The Death Of Abundance'

    02/01/2012 6:12:40 AM PST · by blam · 89 replies
    TBI ^ | 2-1-2012 | Joe Weisenthal
    BILL GROSS: 'We Are Witnessing The Death Of Abundance' Joe Weisenthal Febuary 1, 2012 In his latest monthly letter, PIMCO's Bill Gross has a long philosophical-sounding discussion about credit, delevering, and the difficult task facing Bernanke. The money line is this paragraph at the end: Where does credit go when it dies? It goes back to where it came from. It delevers, it slows and inhibits economic growth, and it turns economic theory upside down, ultimately challenging the wisdom of policymakers. We’ll all be making this up as we go along for what may seem like an eternity. A 30-50...
  • Eurozone debt crisis: it's fiscal union or bust, says Pimco

    12/03/2011 4:10:09 PM PST · by bruinbirdman · 7 replies
    The Telegraph ^ | 12/3/2011 | Richard Blackden and Rachel Cooper
    European governments must rapidly commit to fiscal union or a partial break-up of the euro to prevent a "fundamental erosion" in demand for the region's debt, Pimco, the world's biggest bond investor, has warned. "They can't continue to muddle through," said Andrew Balls, who runs Pimco's European investments. "They'll either have to signal their position or you'll get a continued disengagement by investors from the eurozone." The stark assessment comes ahead of a gathering of European leaders in Brussels that has been billed as a summit that cannot afford to fail. A crisis that began in Greece almost two years...
  • Bill Gross Sends Out Big Apology To Investors, And Then Declares That The Economy Is Doomed

    10/15/2011 7:33:34 AM PDT · by blam · 7 replies
    TBI ^ | 10-15-2011 | Joe Weisenthal
    Bill Gross Sends Out Big Apology To Investors, And Then Declares That The Economy Is Doomed Joe Weisenthal Oct. 15, 2011, 6:38 AM | Funny, just yesterday afternoon we pointed out the irony of nobody caring about the fact that Bill Gross had loaded up the boat on the long end of the yield curve, a gamble that obviously meant one thing: He sees no growth or inflation ahead -- essentially an economy that's doomed.Well.... Now he might get more attention, because he just put that in writing. Dealbreaker (via ZeroHedge) put up a special letter from Gross to his...
  • Bill Gross (PIMCO) Just Made A Huge Bet On Economic Doom, And Nobody Seems To Care

    10/14/2011 11:57:46 AM PDT · by blam · 8 replies
    TBI ^ | 10-14-2011 | Joe Weisenthal
    Bill Gross Just Made A Huge Bet On Economic Doom, And Nobody Seems To Care Joe Weisenthal Oct. 14, 2011, 2:01 PM This week, bond god Bill Gross just made a super-long bet on the long end of the yield curve, coming right after a historic rally in fixed income. It was a gigantic shift from his stance earlier this year, when he bet against Treasuries -- a bet that famously worked out badly for him. The interesting thing about this is that his short bet got TONS of attention (including a big story in The Atlantic), whereas his new...
  • After a two-year rebound, recession risks rise (fears of a double dip no longer a fringe view)

    08/20/2011 7:19:58 PM PDT · by SeekAndFind · 30 replies
    Los Angeles Times ^ | 08/20/2011 | Tom Petruno
    The U.S. economy has officially been out of recession for two years, but fear of falling back into the abyss has dogged the recovery every step of the way. Now, the prospect of recession no longer is a fringe view. "Recession is not inevitable, but I think there's better than a 50-50 chance now," said Bill Gross, the respected investment chief at bond fund giant Pimco in Newport Beach. Stock markets worldwide have been ringing warning bells since late July, as share prices have plunged in the steepest pullback since the 2008 financial-system crash. The Dow Jones index sank nearly...
  • Obama considers Republican for one of two seats on Fed

    08/12/2011 10:23:18 PM PDT · by Libloather · 17 replies
    Washington Post ^ | 8/12/11 | Neil Irwin
    Obama considers Republican for one of two seats on FedBy Neil Irwin, Published: August 12 President Obama is considering nominating two economists with backgrounds in finance — one of them a Republican — as Federal Reserve governors, according to a source familiar with the decision making. The White House is looking at Jeremy Stein, a Harvard economist, and Richard Clarida, of Columbia University and the bond investment firm Pimco, to fill two vacant slots on the seven-member Fed Board of Governors. Clarida served in George W. Bush’s Treasury Department as an assistant secretary. Stein did a brief stint at Treasury...
  • Fed to Keep Rates Low for a 'Long, Long Time': Gross

    07/13/2011 7:27:39 AM PDT · by freespirited · 21 replies
    CNBC ^ | 07/13/11 | Jeff Cox
    The Federal Reserve is unlikely to change monetary policy for years as the economy remains mired in an extended period of slow growth, Pimco's Bill Gross told CNBC. As Fed Chairman Ben Bernanke prepares his much-awaited Humphrey Hawkins speech, the co-CEO of the world's largest bond manager said he sees no end in sight to the central bank's policy of sub-zero real interest rates. "What Bernanke should explain in terms of his language is it's really going to be a long, long time from which the Fed deserts its 25 basis points Fed funds target," Gross said. "That means perhaps...
  • Pimco says Italian bond selloff unwarranted

    07/13/2011 1:36:18 AM PDT · by buzzer · 11 replies
    Reuters ^ | 07/12/2011 | unknown
    Pimco, the world's top bond fund manager, is using the latest selloff in Italian government debt to increase its holdings, according to Andrew Bosomworth, the head of its fixed income portfolio management. "We're using the dislocations in the market to reduce underweights in Italy," Bosomworth told Reuters. "Italy is not in the same boat as the peripherals. They're not comparable. Italy has a debt stock problem but it's not comparable to Greece in terms of institutions and track records." Bosomworth said he was not talking up his portfolio. He said Pimco was starting from an underweight position. German daily Die...
  • Bill Gross Just Said The Magic Phrase, And The Market Just Jumped (QE-3 Coming)

    06/22/2011 9:55:10 AM PDT · by blam · 7 replies · 1+ views
    TBI ^ | 6-22-2011 | Joe Weisenthal
    Bill Gross Just Said The Magic Phrase, And The Market Just Jumped Joe Weisenthal Jun. 22, 2011, 10:59 AM In a tweet, Bill Gross of PIMCO just predicted that QE3 would be revealed in August at Jackson Hole. That tweet hit at 10:23. On that prediction, stocks just jumped. No wonder they call him God.
  • US in even worse shape than Greece - Pimco founder Bill Gross (America's largest Bond Investor)

    06/14/2011 7:03:55 AM PDT · by SeekAndFind · 26 replies
    American Thinker ^ | 06/14/2011 | Rick Moran
    The founder of one of the largest bond fund management companies in the world thinks the US is in worse financial shape than Greece.CNBC: When adding in all of the money owed to cover future liabilities in entitlement programs the US is actually in worse financial shape than Greece and other debt-laden European countries, Pimco's Bill Gross told CNBC Monday.Much of the public focus is on the nation's public debt, which is $14.3 trillion. But that doesn't include money guaranteed for Medicare, Medicaid and Social Security, which comes to close to $50 trillion, according to government figures.The government also...
  • PIMCO's Bill Gross: Still Early/Wrong, And Now Even Earlier/Wronger. Bond Yields are Down.

    05/27/2011 6:32:39 AM PDT · by SeekAndFind
    Wall Street Journal ^ | 05/26/2011 | Mark Gongloff
    The yield on the 10-year Treasury note is now at 3.06%, its lowest of the year, well below its 200-day moving average and starting to worry the psychologically important 3% level, which it hasn’t broken since last December. It will not break that level any time soon, however, Pimco chieftain Bill Gross declared to Bloomberg TV today. He once again stood by his call that bond yields will rise once the Fed stops buying bonds under its QE2 program in June, a call he has been making since early March, while watching bond yields march steadily lower. Just two days...
  • Protecting Against 'Financial Repression'

    05/21/2011 11:17:28 AM PDT · by DeaconBenjamin · 12 replies · 1+ views
    Seeking Alpha ^ | May 10, 2011
    Financial repression is making a comeback. Bill Gross dedicated his May investment letter to financial repression, and an article by the FT's Gillian Tett described both policymakers and investors refamiliarizing themselves with its tenets.What is "financial repression"? Below is an abridged definition from Reinhart & Rogoff's This Time is Different: Governments force residents to save in banks by giving them few, if any, other options. They then stuff [their] debt into the banks via reserve requirements and other devices. This allows the government to finance a part of its debt at a very low interest rate; financial repression thus constitutes...
  • Stocks, Flows, and Pimco (Wonkish). Paul Krugman says Bill Gross is wrong to dump US Treasuries

    04/20/2011 6:56:40 AM PDT · by SeekAndFind · 20 replies
    New York Times ^ | 04/20/2011 | Paul Krugman
    I’ve been getting questions about what happens when the Fed wraps up QE2 — related especially to Bill Gross’s public view that interest rates will shoot up. This is related to the question of the extent to which QE2 has kept interest rates low. So a quick exposition of my theoretical position, which also happens to be more or less standard economics.So: I basically think of asset prices in a Tobin-type stock equilibrium framework (pdf). People make portfolio choices, allocating their wealth among bonds, stocks, etc.. Asset prices – including the famous “q” – rise and fall to match...
  • EXCLUSIVE INTERVIEW: Bill Gross of Pimco

    04/08/2011 5:58:54 AM PDT · by Hojczyk · 12 replies · 1+ views
    Washington Post ^ | April 7,2011 | Jennifer Rubin
    Bill Gross, founder and co-chief investment officer of Pimco, the world’s largest mutual fund, made news last month when he dumped all U.S. Treasurys from the $1 trillion fund he operates. I spoke with him by phone yesterday afternoon. He had a solemn warning: The United States has a year or two to change course or face a debt crisis akin to what Greece, Portugal and Ireland have experienced. He describes bond traders as “vigilant but not vigilantees,” meaning they are cautious and on the outlook for signs that inflation (“the enemy of bonds”) will rear its head. He explained...
  • Pimco's Gross: Employment Gains Show QE2 Is Working

    04/02/2011 11:39:18 AM PDT · by DannyTN · 23 replies
    Bloomberg News ^ | Friday, 01 Apr 2011 10:35 AM | Bloomberg News
    Link Only - Bloomberg News was author.
  • Bill Gross calls U.S. budget a Greek tragedy (worse than Greece)

    03/31/2011 6:42:25 AM PDT · by dennisw · 9 replies
    fortune ^ | March 31, 2011 5:40 am | Colin Barr
    Gross runs Pimco, the $1.2 trillion investment manager that has spent recent months selling Treasury bonds, citing their low yields and poor prospects. He explains in his monthly investment outlook posted Wednesday evening that U.S. government bonds "have little value" in a world of bloated budgets. While outstanding federal debt totals $9.1 trillion, he estimates the government's actual liability at $75 trillion, counting promises made under Medicare, Medicaid and Social Security. "The incredible reality is that the $9.1 trillion federal debt that constitutes the next-to-tiniest ball in our chart is nothing compared to unfunded Medicaid and Medicare. It is like...
  • Is this why Bill Gross dumped Treasuries?

    03/18/2011 7:16:35 AM PDT · by SeekAndFind · 4 replies
    A couple of revealing charts from the Fed’s Flow of Funds data. Both show net flows into Treasuries by creditor type and the Federal Government’s borrowing during each quarter. Note, the quarterly data is annualized.The first chart illustrates how QE2 flushed domestics out of Treasuries and effectively funded 63 percent of the budget deficit in Q4. The Treasury is prohibited from directly selling bonds to the central bank, but effectively finances the government through POMO.Given that a large portion of the Rest of World category are central banks recycling BOP surpluses, it’s likely that 90 percent of the U.S. budget...
  • PIMCO Dumps All Remaining Treasuries in Total Return Fund; Six Reasons to Fade Bill Gross

    03/11/2011 6:39:48 AM PST · by SeekAndFind · 5 replies
    Global Economic Trend Analysis ^ | 03/11/2011 | Mike Shedlock
    Pimco's Bill Gross has been dumping US government debt in favor of other alternatives including emerging-market opportunities. Looking ahead, I think it's more likely to be a bullish setup for treasuries than not. First, please consider the news. Bloomberg reports Pimco’s Gross Eliminates Government Debt From Total Return Fund Bill Gross, who runs the world’s biggest bond fund at Pacific Investment Management Co., eliminated government-related debt from his flagship fund last month as the U.S. projected record budget deficits. Pimco’s $237 billion Total Return Fund last held zero government-related debt in January 2009. Gross had cut the holdings to...
  • World's Largest Bond Fund Manager Heads For The Lifeboat. PIMCO abandons US Treasuries

    03/10/2011 6:52:19 AM PST · by SeekAndFind · 14 replies
    American Thinker ^ | 03/10/2011 | Tom Shuhadlonik
    Bill Gross manages the world's largest bond fund.  If you own bonds in your retirement, either through his PIMCO fund or some other branded variant, there is a good chance he manages some of your money.  Yesterday he announced he has abandoned the US bond market in his largest fund.  As of January 2009, his $237 billion Total Return Fund held zero government related debt. People expecting a stampede from the US bond market are going to be disappointed.  Bond holders are not a herd of animals who follow each other blindly.  Bond holders are a mass of individuals with...
  • Pimco Dumping All U.S. Bonds & Carl Icahn Returning $1.6 Billion to His Investors?????

    03/09/2011 10:11:47 PM PST · by Stayfree · 38 replies
    Vanity | March 9, 2011 | Stayfree
    If Bill Gross of Pimco dumps all U.S. bonds in his portfolio and Carl Icahn returns $1.6 billion to his investors, one might be a little concerned that the proverbial sh*t is going to hit the proverbial fan soon...any thoughts?
  • Should We Be Alarmed That The Biggest Bond Fund In The World Has Dumped U.S. Treasury Bonds?

    03/09/2011 6:54:29 PM PST · by blam · 43 replies
    Should We Be Alarmed That The Biggest Bond Fund In The World Has Dumped All Of Their U.S. Treasury Bonds?March, 9, 2011 Bill Gross, the manager of the biggest bond fund in the world, has forgotten more about bonds than most of us will ever learn. That is why the big move that PIMCO has just made is so unsettling. At one time PIMCO held more U.S. government debt than any other bond fund on the globe, but now news has come out that they have gotten rid of all their U.S. government-related securities. So should we be alarmed? For...
  • PIMCO (biggest bond fund) Dumping All Treasuries, Bringing "Government Related" Holdings To Zero

    03/09/2011 12:27:54 PM PST · by gregd0180 · 204 replies · 2+ views
    And many thought Bill Gross was only posturing when he said he is getting the hell out of dodge. Based on still to be publicly reported data by Pimco's flagship Total Return Fund, the world's largest bond fund, in the month of January, has taken its bond holdings to zero (and -14% on a Duration Weighted Exposure basis). The offset, not surprisingly, is cash. After sporting $28.6 billion in "government related" securities, TRF dropped to $0.0, while its cash holdings surged from $11.9 billion to a whopping $54.5 billion (based on total TRF holdings of $236.9 billion as of February...
  • BILL GROSS: There's "No Way Out" Of The Debt Trap

    03/09/2011 12:03:29 PM PST · by SeekAndFind · 16 replies
    Business Insider ^ | 03/09/2011 | Stacey Curtin
    Debt, debt and more mounting debt is plaguing countries around the globe. In this U.S., states across the country face a collective $125 billion shortfall for fiscal 2012, while Congress is facing a budget gap nearly 10 times that size. PIMCO founder and co-CIO Bill Gross has previously said that if the United States were a corporation, no one in their right mind would lend us money. For the last decade, we’ve been “relying on the kindness of strangers” to help cover our debts, he tells Aaron in the accompanying clip. By “strangers” he is referring to our foreign counterparts,...
  • "No Way Out" of Debt Trap, Gross Says: U.S. Living Standards Doomed to Fall

    03/09/2011 7:41:22 AM PST · by EBH · 47 replies · 1+ views
    Yahoo/Finance ^ | 3/9/11 | Stacy Curtin
    If the country cannot come to grips and cut back on entitlement programs, U.S. debt will continue to grow and governments around the world will loose faith in the U.S. dollar. Foreign goods would become more expensive, says Gross, while our standard of living would drop. Under the second option, if entitlement programs are cut, many Americans would naturally have to learn to live on less and take a hit to their standard of living. “There is really no way out of this trap and this conundrum at this point,” says Gross. From an investment perspective his advice is to...
  • “No Way Out” of Debt Trap, Gross Says: U.S. Living Standards Doomed to Fall

    03/08/2011 8:18:37 AM PST · by Michel12 · 50 replies
    Yahoo finance ^ | March 8 2011 | Stacy Curtin
    Debt, debt and more mounting debt is plaguing countries around the globe. In this U.S., states across the country face a collective $125 billion shortfall for fiscal 2012, while Congress is facing a budget gap nearly 10 times that size. PIMCO founder and co-CIO Bill Gross has previously said that if the United States were a corporation, no one in their right mind would lend us money. For the last decade, we’ve been “relying on the kindness of strangers” to help cover our debts, he tells Aaron in the accompanying clip. By “strangers” he is referring to our foreign counterparts,...
  • PIMCO Explains Why Meredith Whitney & Muni Haters Have Blown This Crisis Way Out Of Proportion

    02/08/2011 12:52:52 PM PST · by SeekAndFind · 9 replies
    Business Insider ^ | 02/08/2011 | Gregory White
    The muni market needed re-pricing, but now it has gotten way out of control, according to PIMCO's Christian Stracke and Joseph Narens. The pair explain that what's happening right now in the muni market makes a certain amount of sense. It's a bit like last year, when the market repriced sovereign risk to act like a credit product, rather than an interest rate product it was previously valued at. That meant yields were higher and the cost to insure the debt rose too as a result of investors realizing that, yes, a sovereign could actually default. Now that's happening with...
  • The New Normal? Bond Fund Managers Buying Stocks (Bill Gross now into equity linked securities)

    12/17/2010 9:00:57 AM PST · by SeekAndFind · 4 replies · 1+ views
    Business Insider ^ | 12/17/2010 | Joshua Brown
    This one is for the hard of hearing and the folks all the way in the back of the auditorium... Bill Gross, the "Bond King", has just changed the rules to allow for the buying of equity-linked securities in his Pimco Total Return flagship fixed income fund (the largest mutual fund on earth). My "tidal wave of money out of bonds into stocks" call from October (When the Levee Breaks) is looking ridic right about now. Oh yeah, on August 26th, I told you you they were coming for that long bond. I was 30 days or so early (Save...
  • Fed Opens Books, Revealing European Megabanks Were Biggest Beneficiaries (Details you should see)

    12/02/2010 9:30:51 AM PST · by FromLori · 49 replies
    Huffingtonpost.com ^ | 12/1/2010 | Marcus Baram
    NEW YORK -- The Federal Reserve on Wednesday reluctantly opened the books on its monumental campaign to save the financial system in the midst of the recent crisis, revealing how it distributed some $3.3 trillion in relief. The data revealed that the Fed's aid was scattered much more widely than previously understood. Two European megabanks -- Deutsche Bank and Credit Suisse -- were the largest beneficiaries of the Fed's purchase of mortgage-backed securities. The Fed's dollars also flowed to major American companies that are not financial players, including McDonald's and Harley-Davidson, through unsecured short-term loans. The measure, initiated in Jan....
  • Panic in the California Municipal Bonds

    11/17/2010 1:11:32 PM PST · by GilGil · 18 replies
    Examiner.com ^ | 11/17/2010 | Gil Guignat
    There is a fund called the PIMCO California Municipal Income Fund II symbol PCK on the New York stock exchange. In the last few days the fund has been going vertical down. Investors can’t get rid of this turkey fast enough. (SEE PICTURE TOP LEFT-DOUBLE CLICK ON CHART TO ENLARGE). “It might be argued that muni markets are merely reflecting similar declines in Treasuries (TLT). Fair enough. Bond holders, though, are probably are more interested in the fact that their bonds have declined rather than why. Warren Buffett warned back in June on the muni bond market as local and...