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’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.
An eye-catching quote…
…from the eye-catching-quote machine that is Mr Bill Gross.
The UK is a must to avoid. Its Gilts are resting on a bed of nitroglycerine.
In fact, the Pimco man is in fine form with his February letter to investors, in which he mulls his status as an aging (65) financial rock star,
“UK gilts resting on a bed of nitroglycerine”
It must have been, what, a couple of days since someone from Pimco last fired a broadside at the UK?
So, the top man, Admiral Bill Gross, has now taken it upon himself to deliver another round of cannon fire.
Treasury Mystère
Well someone is buying US government debt, despite prominent prognostications as to its worth(lessness). The problem is we don’t know who.
Wednesday’s auction of $21bn of 10-year US government bonds saw reasonably good demand,
UK debt is still wanted?
Pimco may be cutting its holdings of UK debt and be fretting about the 80 per cent chance of a ratings downgrade, but there are plenty of other investors keen to get their hands on government paper – if Wednesday’s auction of £4bn of 2015 gilts is anything to go by.
Pimco makes it personal in the UK
Pimco has laid into the UK again – this time having a go, specifically, at the Labour government.
In an interview with Dow Jones Newswires, Scott Mather, head of global portfolio management, said there was an 80 per cent chance of a credit rating downgrade for the UK if the chancellor’s debt reduction plans remain as they are.
Consolidating the US, UK gov’t bond sell-off
With the holiday season finally over, it’s probably a good time to contemplate the period’s more excessive and illiquid market moves. Among them the rather sudden and acute sell-off in US and UK government bonds.
Pimco hires Kashkari
Neel Kashkari, who ran the US government’s $700bn Tarp scheme during the Bush administration, has joined Pimco, the asset manager specialising in bonds. The move is likely to provoke criticism of the “revolving door”
Pimco hires Neel Kashkari
Pimco, the world’s largest bond fund, has hired Neel Kashkari – the man best known for being put in charge of the US Treasury’s $700bn bailout plan at the tender age of 35.
Dealbreaker has the Pimco memo announcing the hire in full;
Asia’s booming bond markets
What did Pimco say last week?
You have to have a keen eye for the next big (bond-related) buck to keep up with the world’s largest bond fund manager, which is moving to set up an Asian bond fund just as the region is seeing a surge of activity in fixed-income markets — both in dollar-denominated and local currency debt.
Pimco looks to Asian bonds
When Pimco moves in, you know there’s money to be made.
Amid signs of both currency appreciation and economic recovery among various Asian countries, Bloomberg reports on Friday that Pacific Investment Management Co.,
Big BlackRock
In any discussion about winners from the financial crisis, US money manager BlackRock must be the lead contender – having landed a series of lucrative contracts over the past year from US efforts to clear up the financial mess,
CME abandons plan to trade OTC derivatives
In a not entirely unexpected move, CME – the world’s biggest futures exchange by volume – and Citadel abandoned their joint effort to set up a trading platform for credit derivatives.
Still, and optimistically, CME said it would continue to push its CDS clearing effort,
Guest post: Mohamed El-Erian on Bernanke’s bold prose
From Pimco’s chief executive…
While it may not rank quite as high as his appearance on the US news show ’60 Minutes’ a few months ago, Chairman Bernanke’s Op Ed in today’s Wall Street Journal is nevertheless notable and important.
Guest post: Mohamed El-Erian – “The crisis is morphing again”
Pimco’s chief executive comments on the suggestion from US presidential adviser Laura Tyson that America should consider drafting a second stimulus package, since the $787bn plan agreed in February is proving “a bit too small.”
Gross: US could lose AAA rating
Bill Gross, manager of the world’s biggest bond fund, warned on Thursday the US was “going the way of the UK” and will eventually lose its top AAA credit rating – a fear that had already spooked financial markets on Thursday and could keep the dollar,
Bill Gross, gnostic
We’re stumped too.
Through my years here at PIMCO there have been numerous demarcation points where Baruch’s whispers almost turned into screams. Two plus two screamed four in September of 1981 with long-term Treasury yields approaching 15%,
First test for US toxic asset plan
The Obama administration will on Friday get the first indication of investor interest in its $1,000bn toxic assets plan amid fears that the threat of government intervention and banks’ reluctance to sell will deter fund managers from participating.
Ponzi meets treasuries bubble
Well, Goldman aside, talk of a bubble in US treasuries is gaining pace.
To wit, the latest missive from Bill Gross, managing director of Pimco, the world’s biggest bonds fund. In his investment outlook,
Pimco to manage Fed’s CPFF
Pimco, the world’s largest bond fund, will manage the commercial-paper assets for the Federal Reserve as part of the government’s Commercial Paper Funding Facility programme, the Fed said Tuesday, reports the WSJ.
Pimco, BlackRock, bid to manage US assets
Pimco and BlackRock have submitted proposals to manage troubled mortgage-backed securities in the biggest portion of the US Treasury’s $700bn financial-rescue programme, reports Bloomberg. State Street and Bank of New York Mellon bid to handle record-keeping and custody services for the Treasury,
Big Macs for all
But more for some.
Recall on Monday that Pimco, the world’s biggest bond manager, attempted to explain the shortfall in lending (interbank and commercial paper) thusly:
Imagine yourself at the drive-thru ordering a Big Mac.
Bill Gross to the rescue?
Bill Gross is to the Hanke Panke as a gold-digger is to a hedge fund manager (well, used to be).
Regardless, the Pimco head is volunteering to manage part of Paulson and Bernanke’s proposed $700bn bailout – for free.
Pimco, Legg Mason, suffer big losses
Bill Gross, the world’s most influential bond manager, suffered his worst day in three years as his flagship bond fund dropped almost 1.40% on Tuesday on exposure to insurance giant AIG, reports Reuters.
Lehman bidders named, Treasury and Fed to resist public subsidy
Bank of America is leading a consortium that includes JC Flowers and China Investment Corp, the Chinese sovereign wealth fund, in a joint bid for Lehman Brothers.
Here’s the breaking FT story from Henny Sender,
Bail-out hands Pimco $1.7bn gain
The Pimco Total Return fund, managed by Bill Gross, reaped a $1.7bn gain following the US government takeover of home loan giants Fannie Mae and Freddie Mac. While shareholders in Fannie and Freddie suffered deep losses,
In praise of… Pimco
Back from managing the Harvard Endowment, Mohamed El-Erian is to be the new CEO of bond giant Pimco.
Stepping out: Bill Thompson, to retire at the end of the year. All announced in a press release from Pimco yesterday.