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Pimco's Gross Sells All U.S. Government Holdings

This is indeed a dramatic move. The world's largest bondholder, Pacific Invest Management Company, dubbed Pimco, sold all of its U.S. government holdings including U.S. treasuries.

At the end of February, Pimco had $236.93 billion or 12% of its holdings in the Total Return Fund in U.S. holdings. That was cut to zero.

Continue reading Pimco's Gross Sells All U.S. Government Holdings

Pimco's Bill Gross: Watch Out for the End of QE2

PIMCO logoWhile controversial, the Federal Reserve's aggressive monetary policy, called Quantitative Easing 2 (QE2), has certainly been nice for investors. Not only have equities surged, but so have commodities. Nice, huh?

But according to Bill Gross, who manages the world's largest bond fund (Pimco), things may get turbulent when QE 2 ends in June. After all, where will the next big catalyst come from?

Continue reading Pimco's Bill Gross: Watch Out for the End of QE2

Bill Gross Opines on 2011

Bond money managers are usually glum. Then again, they need to be cautious since they are locking up money at fixed rate of returns. In a volatile world, this can certainly be a risky proposition.

So it should be no surprise that the biggest bond money manager, Bill Gross, is not enthusiastic about 2011. He leads the Pacific Investment Management Co., which has $1.2 trillion under management.

Continue reading Bill Gross Opines on 2011

PIMCO Municipal (PMF): A 10% Tax-Equivalent Yield

"We've all read stories about the states' budget woes. In the wake of falling tax revenues, brought on by the decline in the housing market and the recession, U.S. states are tightening their belts; so why would I invest in state municipal bonds?" asks income specialist Amy Calistri.

The editor of The Daily Paycheck explains, "Here's the reasoning behind our recommendation for PIMCO Municipal Income (PMF).

"In the wake of falling tax revenues, brought on by the decline in the housing market and the recession, U.S. states are tightening their belts. Some states, such as California, are facing sizable budget challenges.

Continue reading PIMCO Municipal (PMF): A 10% Tax-Equivalent Yield

Beware the Bond Bubble

Throughout history, there have been periodic bubbles. Unfortunately, they have always ended badly.

Of course, the U.S. markets have experienced several bubbles over the past two decades. There was the dot-com surge as well as the real estate mania.

But now the bond market is in the midst of a bubble -- and it could be in the late stages. In fact, the bond market has likely been in a bubble since the early 1980s.

Continue reading Beware the Bond Bubble

PIMCO: 25% Chance of Deflation in U.S.

A senior official overseeing the world's largest bond fund says there is a 25% chance that the United States will encounter deflation and a double-dip recession.

"I do not think the deflation and double-dip is the baseline scenario, but I think it's the risk scenario," Mohamed A. El-Erian, chief executive officer for Pimco, told Bloomberg News Thursday. He added that U.S. unemployment will probably stay unusually high.

El-Erian said companies accumulating cash and saving by individuals are making it tougher to fight deflation. In June, the U.S. savings rate rose to 6.4%.

Continue reading PIMCO: 25% Chance of Deflation in U.S.

Pimco Director Sees 'Very Extended Period' for Fed's Low Interest Rates

Paul McCulley, a managing director at Pimco, said he sees little chance of a Fed interest rate hike any time soon.

"The Fed's going to be on hold for a very extended period of time," McCulley said in an interview with CNBC. "If you got a deflationary fiscal policy in Europe you're going to have a deficiency of global aggregate demand and the Fed should be on hold."

McCulley added that those calling for fiscal belt-tightening on both sides of the Atlantic are advocating the policy prematurely.

Continue reading Pimco Director Sees 'Very Extended Period' for Fed's Low Interest Rates

Bond King Bill Gross Buys His Own Funds

If you are considering putting more of your money into bonds, you are not alone.

Putting his money where his mouth is, famous Pimco bond manager Bill Gross just invested $7 million in three of his own funds.

Gross recently bought a total of 1.1 million shares in the Pimco Corporate Opportunity Fund (PTY), the Pimco Income Strategy Fund (PFL) and the Pimco Income Strategy Fund II (PFN).

So what do these funds invest in?

Continue reading Bond King Bill Gross Buys His Own Funds

Pimco's Gross Says That Greece Must Restructure Its Debt

Pimco logoThe Greek and German parliaments approved the Greek rescue package. Nevertheless, the spreads on Greek, Spanish and Portuguese debt are widening, which indicates that the crisis is deepening.

Unlike the US where the Federal Reserve can act alone on behalf of the country, the European model is quite different. There is a European Central Bank that has limited powers. The EU cannot act alone on behalf of the eurozone. Each country's parliament must approve of the EU actions.

Continue reading Pimco's Gross Says That Greece Must Restructure Its Debt

Pimco's Gross: Ratings Agencies Lack Common Sense

One of the world's premiere bond fund managers is recommending that investors view credit ratings issued by ratings agencies with a critical and skeptical eye.

Pimco's Bill Gross, in a commentary published on Pimco's website, said ratings agencies are necessary, but their services are overpriced and their evaluations are subject to the influence of the issuer, "which in turn muddles their minds and clouds their judgment to say the least."

Continue reading Pimco's Gross: Ratings Agencies Lack Common Sense

Closing Bell: Could Have Been Far Worse (C, AIB, OXGN, OSTK)

This was set up for a good day, but ADP employment data projected about 23,000 jobs were lost rather than some 40,000 created. This lowered the unofficial expectations for Friday's unemployment data and non-farm payrolls data. Then came the weaker than expected ISM data from Chicago, which effectively sealed the fate for a weak trading day.

Bill Gross of PIMCO also noted that stock and bonds might have sub-par returns for years. With the negative macro-news flow today, a drop of 50 DJIA points after the run up we have seen lately might be considered a win.

Here were today's unofficial closing bell levels:

Dow 10,856.63 -50.79 (-0.47%)
S&P 500 1,169.43 -3.84 (-0.33%)
Nasdaq 2,397.96 -12.73 (-0.53%)

Top Trader Alerts
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Continue reading Closing Bell: Could Have Been Far Worse (C, AIB, OXGN, OSTK)

PIMCO's Gross Sees Sovereign Debts Rates Approaching Corporate Rates

There's bad news and good news regarding Bill Gross's latest assessment of global credit markets.

The bad news is that Gross, who heads the world's largest mutual fund at PIMCO, said government bailouts point to a global "unicredit" bond market in which sovereign debt rates mirror those for corporations, Bloomberg News reported Monday.

Continue reading PIMCO's Gross Sees Sovereign Debts Rates Approaching Corporate Rates

BNP Paribas Says the Pound Will 'Fall off the Cliff'

The March British pound futures traded at $1.5928 on Thursday. BNP Paribas, an international commodities trading firm, predicts that the pound will fall to $1.5730 in the coming weeks and then to $1.40.

Analyst Ian Stannard, said that the pound could "fall off the cliff." Some high-profile bond investors, including Bill Gross's Pimco investments, are pulling back from the purchase of Gilts (British bonds). Some investors are even pulling out completely.

Continue reading BNP Paribas Says the Pound Will 'Fall off the Cliff'

Gross Says Deficits Will Push Up Interest Rates and Other Priceless Comments

Bill Gross is one of the world's biggest investors. In his recent monthly letter he cites the dangers of ultra high deficits in the US.

But first, we must cite Gross' comments on the state of our democracy. He said: "Our democracy does not work anymore, or perhaps more accurately, when it does, it works for special interests and not the American people." "When special interests even singular citizens write a check, it represents a perversion of democracy, not the exercise of the First Amendment..."

Here's another priceless quote: Referring to the money spent by health care lobbyists, he said: "What amazes me the most of all is that politicians can be bought so cheaply."

Continue reading Gross Says Deficits Will Push Up Interest Rates and Other Priceless Comments

PIMCO's Gross: Investors Must Prepare for the End of Easing, Stimulus

Just call it the first, major adjustment of the post-financial crisis era: PIMCO's Bill Gross said Wednesday investors and markets need to prepare for the eventual reduction in monetary quantitative easing funds and the end of other stimulus programs.

If exit strategies proceed as planned, "All U.S. and U.K. asset markets may suffer from the absence of the near $2 trillion of government checks written in 2009," wrote Gross, who heads the world's largest mutual fund, in a PIMCO commentary published Wednesday.

Continue reading PIMCO's Gross: Investors Must Prepare for the End of Easing, Stimulus

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Symbol Lookup
IndexesChangePrice
DJIA-89.2312,801.23
NASDAQ-23.352,903.88
S&P 500-9.311,342.64

Last updated: February 11, 2012: 02:05 AM

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