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’Blimey, Bill Gross has been on the Virginia Woolf…
Presented without comment:
Where do we go when we die?
We go back to where we came from
And where was that?
I don’t know, I can’t remember
Virginia Woolf, “The Hours”
I don’t remember much of this life,
German negative yields as harbinger of deflation
Mohammed El-Erian has penned a few thoughts about Germany’s negative yielding bubill auction and indentifies — quite rightly — that there are major risks associated with this precedent.
Ultimately,
El-Erian: A disappointing G20 communiqué
Mohamed El-Erian, chief executive and co-chief investment officer at PIMCO, responds to the outcome of the G20 Cannes summit.
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With a generally underwhelming communiqué, the G20 has missed an important opportunity to address mounting concerns about the dimming prospects for global growth,
El-Erian: Interpreting Bernanke’s Jackson Hole speech
Mohamed El-Erian, chief executive and co-chief investment officer at PIMCO, responds to the Federal Reserve chairman’s speech at the Jackson Hole conference.
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Chairman Bernanke’s Jackson Hole speech,
On misunderstanding QE
There are literally a thousand notes in our inbox this Jackson-Hole Friday morning, going something like:
“Bernanke unlikely to pave the way for QE3″
And most of them put it down to: a rebound in core inflation to a 19-month high of 1.8 per cent in July.
A change in Pimco strategy?
Has Bill Gross ditched his “long-short-long position” on US Treasuries?
Pimco on Tuesday published the latest holdings of its flagship Total Return Fund. The statistics are accurate as of 30 June.
El-Erian: On governments as portfolio managers
From the ranks of FT Alphaville’s own AAA-list comes Mohamed El-Erian with a post about the three phases of governments’ involvement in global markets since the crisis.
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Understandably,
Pimco explains how frogs make butter out of government debt
You may remember Bill Gross’ sage advice to “buy cheap bonds” and his amphibious explainer:
All right fellow frogs, so we’re being repressed and shortchanged in order to allow Uncle Sam to balance its books.
Bill Gross: do not buy expensive bonds
Wednesday’s 38,000 rise in ADP employment is another unreliable yet unnerving data point for the US economy and seemed to be driving 10-year US Treasuries close to 3 per cent at pixel time.
The bear market for bonds might be coming but it’s sure taking its time.
El-Erian: Implications for global markets of Bin Laden’s death
Mohamed El-Erian, chief executive and co-chief investment officer at investment fund PIMCO responds to Sunday’s news that Osama bin Laden, was killed near the Pakistani capital of Islamabad following a “targeted operation” by US forces.
Further further reading
For the commute home, where your kids are tagging embarrassing pictures of you on Facebook,
- The Economist halts production for a month to let its readers catch up. (Or so says America’s finest news source.)
- The myth of the Fed’s “unprecedented”
Grossly unimpressed: Pimco shorts US government debt
Pimco is not amused with the political impasse in Washington.
From Reuters on Monday morning:
PIMCO has shifted to a short position in U.S. government-related debt in the world’s largest bond fund,
Gross dumps his US government debt
Holdings of US Treasuries at the world’s largest bond fund — Pimco’s Total Return — have fallen to zero. Bill Gross really isn’t hanging around for the waitress’s reaction.
(Via Zerohedge).
Pimco – the giant shifts weight
* Money has become the economic and political wedge for profound changes in American society.
* Perhaps the most deceptive policy tool to lessen debt loads is the “negative” or exceedingly low real interest rate that central banks impose on savers and debt holders.
The metamorphosis of the muni market
Wednesday’s House hearing into state and municipal debt had a touch of the “Scottish play” about proceedings.
When Meredith Whitney was finally mentioned, Chairman Patrick McHenry quipped that the rules had been broken.
The latest ‘New Normal’ backlash(es)
The New New Normal apparently means to bash the old New Normal.
They say that three makes a trend in journalism. Never mind that we don’t know who “they” are, or that it’s quite a silly notion. We’ve got four examples of something interesting,
Good luck, Mr Gross
Pimco’s Bill Gross last week poured $4.4m of his own money into the municipal bond market in the States — which would be, you know, that thing that’s been tanking ever since the Build America Bond programme looked set to expire.
Introducing… the Sammy scheme
Why is Pimco’s Bill Gross feeling gloomy today (emphasis ours)?
Wednesday is the day when the Fed will announce a renewed commitment to Quantitative Easing – a polite form disguise for “writing checks.”…….Still,
Those blemished Countrywide credit loans
So… since FT Alphaville was working on a special RMBS supplement;
We spoke with Scott Simon, head of MBS at Pimco last week — who gave us this quote:
“There’s been an amazing amount of things
BlackRock, Pimco, NY Fed coming after BofA, Bloomberg says
No sooner does Bank of America announce earnings than it gets hit with a significant threat of legal action from mortgage bond holders – including the New York Fed. From Bloomberg:
Pacific Investment Management Co.,
El Erian: The Fed, as expected…
Mohamed El-Erian, chief executive and co-chief investment officer at PIMCO, examines the Fed’s central message in Tuesday’s FOMC statement and notes the next few days in the markets will reveal more about its impact.
Guest post: El-Erian on an interesting week ahead
Mohamed El-Erian, chief executive and co-chief investment officer at PIMCO, argues that this week will show Europe’s debt crisis and the global configuration of currencies returning to the fore.
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This coming week will be an interesting one.
El-Erian: How to read Bernanke’s Jackson Hole Speech
Mohamed El-Erian, chief executive and co-chief investment officer at PIMCO, reacts to Fed chairman Ben Bernanke’s Jackson Hole speech.
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In his eagerly anticipated speech at Jackson Hole,
Guest post: El-Erian on violent market moves
Why such a sharp sell-off in equities on Wednesday, together with a further rally in US government bonds? I suspect, writes Mohamed El-Erian, that three US-related drivers are part of the answer – one is obvious,
JGBs, US debt and ‘lively debates’
Rarely has so much financial information and analysis diverged so widely across a vast spectrum.
This fact was highlighted this week by Mohamed El-Erian, chief executive of mega bond fund Pimco (and occasional FT Alphaville contributor) and Richard Clarida,
Further from El-Erian on Bernanke and sliding stock markets
With Fed chairman Ben Bernanke on Capitol Hill presenting his semi-annual monetary policy report to Congress, stock markets are under notable pressure.
Bernanke’s full written testimony is now available.
El-Erian: What to expect from Bernanke’s report to congress
Mohamed El-Erian, chief executive and co-chief investment officer at PIMCO, discusses the options facing the Federal Reserve as chairman Bernanke prepares to address Congress.
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Over the next two days,
Guest post: El-Erian on a disappointing G20 compromise
Pimco’s chief executive Mohamed El-Erian considers whether the G20 Summit in Toronto created a constructive compromise on financial stability, or generated a losing plan to turn around a slowing global economy.