Salient to Investors: Bill Gross at Pimco said investors should not trust the opinion of Moody’s Investors Service on the US’s Aaa rating and should instead trust S&P, Fitch & Egan Jones for credit ratings. Gross said Moody’s and the US Treasury are one happy family over the US debt limit
READ MORE... →Salient to Investors: Bill Gross at Pimco said the Fed is committed to taper, which will be lite: it will probably reduce its assets purchases by $10 billion and focus on Treasury bonds. Mohammed El-Erian said there are no great choices for the Fed at this point, and today’s jobs number tells
READ MORE... →Salient to Investors: Joshua Shapiro at Maria Fiorini Ramirez said today’s jobs numbers are soggy and at odds with other data that shows things are OK. Shapiro said recent reports show pockets of strength as well as pockets of weakness in the economy. The participation rate decreased to 63.2 percent, the
READ MORE... →Salient to Investors: Bill Gross at Pimco said: Buy short-term Treasuries and credit securities that will be bolstered by the Fed’s intent to keep benchmark lending rates at almost zero. These assets will soon be the nearly sole focus of central banks. Buy TIPS as a hedge against the risk
READ MORE... →Salient to Investors: Adrian Miller at GMP Securities said 2 weeks of Fed-speak have laid the foundation for a September tapering. Bill Gross at Pimco said no more QE mean no more bull markets. The 30-year bond yield was 3.91 percent on August 19, the most since August 2011. Vincent Chaigneau at Societe Generale said 10-year
READ MORE... →Salient to Investors: Morningstar said investors pulled $14.5 billion from Pimco’s US mutual funds in June, $18.7 billion from Pimco’s Total Return fund since May. Bill Gross at Pimco said bond managers need to adapt to an era of lower fixed-income returns by being flexible and embracing unconstrained strategies, alternative
READ MORE... →Salient to Investors: Bill Gross at Pimco said the Fed won’t tighten monetary policy until 2016 at the earliest, and added to mortgage securities in June. Mohamed El-Erian at Pimco said 10-yr Treasury yields may drop to 2.2 percent in 2013. Read the full article at http://www.bloomberg.com/news/2013-07-21/pimco-s-gross-says-fed-will-tighten-policy-in-2016-at-earliest.html Click here to receive free and immediate email
READ MORE... →Salient to Investors: Bill Gross at Pimco added to holdings of Treasuries to 38 percent of his fund and added holdings of mortgage securities to 36 percent in June. Gross cut non-US developed nations’ debt to 5 percent, while investment-grade credit holdings were unchanged at 6 percent. Read the full article at http://www.bloomberg.com/news/2013-07-15/gross-adds-to-holdings-of-treasuries-after-tips-losing-bet-1-.html
READ MORE... →Salient to Investors: Dan Dorrow at Faros Trading said the strong jobs numbers suggests tapering sooner because the cumulative strong momentum is there. Bill Gross at Pimco sees a stronger dollar ahead, but not US-growth friendly as the ECB and BOE ease while Fed tapering looms. Fed-funds futures indicate the probability
READ MORE... →Salient to Investors: Morningstar says 10 percent of the TIPS market is owned by Pimco. Jeffrey Gundlach at DoubleLine says TIPS are a disaster and a trap because unless inflation rises, all you have is interest rate risk, just like every other Treasury – it is an asset class that is exposed
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