The coming bond market bloodbath won't necessarily look all that bloody.
So says the shy and reclusive Bill Gross, who is out Tuesday with his latest monthly investment outlook. Gross, who runs the world's biggest bond fund at Pimco, has been screaming for months that the sky is falling in the government bond market, thanks to an untenable U.S. fiscal position and all the problems that come with it.
But in the MOREColin Barr - May 3, 2011 1:32 PM ET
Buyout firms looking to cash in on their brand equity have either gone public or sold shares to a sovereign wealth fund. Now, there's an alternative.
PIMCO boss Mohamed El-Erian last week confirmed reports that firm employees were buying and selling equity via SecondMarket, the private online marketplace for alternative assets. Now it seems that PIMCO is just the tip of a much larger iceberg.
Jeremy Smith, chief strategy officer for SecondMarket, tells MOREDan Primack - Apr 4, 2011 12:34 PM ET
PIMCO boss Mohamed El-Erian was in Times Square this morning, for a wide-ranging interview with Reuters editor-at-large Christa Friedland. Lots of talk about Japan, Greek tragedies and the like.
Outside reporters were allowed in the door, but Reuters HQ is a couple hundred miles south of my current location. Too bad, because I wanted to ask El-Erian about a New York Observer report that PIMCO equity had begun quietly trading on SecondMarket, MOREDan Primack - Mar 31, 2011 11:12 AM ET
Bill Gross says stocks and bonds could be in for a world of hurt this summer.
Gross, who runs the world's biggest bond fund at investment manager Pimco, said in his March investment outlook that when the Federal Reserve's quantitative easing program ends in June, bond yields are likely to go "higher, maybe even much higher."
That will spell pain for bondholders because rising yields reflect falling prices. But it could also MOREColin Barr - Mar 2, 2011 10:56 AM ET
A flood of money into fixed income drove once-stable bonds into bubble territory before starting to retreat this month. Here's how to adjust your strategy and protect your portfolio.
For generations, bonds have offered investors a safe haven that provides both steady income and far more stable prices than mercurial, zigzagging stocks. But lately, bonds have been doing the zigzagging, threatening the very qualities that make fixed income so attractive.
The financial MOREShawn Tully, senior editor-at-large - Dec 16, 2010 5:00 AM ET
Is an attack from Sarah Palin the best news the Federal Reserve could hope for?
Pimco's Paul McCulley thinks it may well be. He argues in a commentary posted Wednesday that a growing anti-Fed backlash is actually a sign that Fed chief Ben Bernanke's unpopular policies are a good bet to actually work.
The recent uproar confirms that Federal Reserve policies amount to "acting irresponsibly relative to conventional wisdom," McCulley writes. He deems this embrace of quantitative MOREColin Barr - Nov 10, 2010 4:50 PM ET
Is Ben Bernanke trying to export our problems to the rest of the world?
Bernanke says in a piece in Thursday's Washington Post that the Fed decided to buy $600 billion worth of Treasury bonds over the next eight months in order to bring domestic interest rates down even further and boost asset prices. He hopes to start a "virtuous circle" of more spending, higher incomes and expanding profits, he says, MOREColin Barr - Nov 4, 2010 12:12 PM ET
Spare the rod, spoil the economy.
That's the message Thursday from Pimco, the big bond manager run by the talkative Bill Gross (right) and owned by giant insurer Allianz of Germany.
In a viewpoint piece posted on the firm's web site, a Pimco executive dubs the United States the "teen drama economy," saying growth and jobs won't return till policymakers show some guts and take an axe to troublesome long-term imbalances.
Doves who would boost stimulus MOREColin Barr - Jul 22, 2010 12:26 PM ET
Pimco is pitching two new indexes that will give investors more exposure to bonds issued in Wall Street's favorite new hunting grounds overseas.
The big bond manager said its PIMCO Global Advantage Government and European Advantage Government bond indexes will be weighted by the size of national economies, rather than the amount of debt they have issued.
That will give fast-growing but less-indebted nations such as Brazil a larger weight, at a time MOREColin Barr - Jul 13, 2010 10:38 AM ET
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