PIMCO: House Prices Yet To Bottom
November 4, 2009
PIMCO’s head of mortgage bonds believes prices are going to continue to fall, particularly on the high end. As FHA loans tighten, and foreclosures begin to increase again, home prices will likely resume their fall which will continue to put pressure on household spending. The article also brings to light a statistic that the price [...]
Read More >>Bill Gross’s Investment Outlook
October 27, 2009
Here is an excerpt from the November outlook newsletter of PIMCO’s Bill Gross. The newsletter can be viewed in its entirety here, where he discusses the effect of leverage on asset values, as well as what sort of numbers the US economy will need to put up to get the FED to raise rates. This view differs [...]
Read More >>Deflation Fears Emerge
September 29, 2009
One of our recent posts discussed housing tax credits and the potential for them to cause deflation. Bill Gross of PIMCO, one of the most well known bond investors is now increasing his position in longer-term government debt, namely 5 and 10 year treasuries, as a hedge against deflation. The loser in his fund are [...]
Read More >>Commercial Paper Market “History”
September 16, 2007
The world’s largest bond fund has reduced its holdings of commercial paper to zero as of late last month. Bill Gross, the manager of the Pimco Total Return Fund had eliminated its holdings of commercial paper by the end of August. Concerned about the impact of mortgage defaults, investors have fled commercial paper leading to demands of higher [...]
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