Salient to Investors: Pimco is the biggest holder of peso bonds. get loads of money Bank of America says that a Romney win could spark a selloff in Treasuries that will be mirrored in Mexican notes, the most correlated to US government bonds of any debt in Latin America. Kevin Daly at Aberdeen Asset
READ MORE... →Salient to Investors: Michael Althof at Pimco said: Pimco favors inflation protection in Australia and the US as global stimulus stokes faster price increases. Central banks are more willing to risk inflation as a trade-off for growth and employment, and pressure for higher inflation longer-term makes index-linked bonds attractive. Pimco likes Australian bonds
READ MORE... →Salient to Investors: Bill Gross at Pimco said the Fed can do nothing but continue its accommodative monetary policies even with the U.S. economy adding more jobs than forecast last month. Pimco bought Spanish and Italian bonds on speculation that Draghi will come to the rescue. Mohamed El-Erian at Pimco said
READ MORE... →Salient to Investors: Bill Gross at Pimco said: Structural headwinds in terms of economic growth, the budget deficit, and the fiscal cliff will dominate the economic debate no matter who wins the election – meaning lower growth due to the excessive debt and leverage built up over 10 or 20 years. Future annual
READ MORE... →Salient to Investors: Pimco said 5 percent of the Total Return Fund was in municipal debt last month, the first that high a percentage in consecutive months since at least 2006. City and state debt has returned 3.7 percent in 2012 after accounting for price swings, versus 0.6 percent for Treasuries – would
READ MORE... →Salient to Investors: Joyce Chang at JPMorgan Chase said QE3 puts emerging-market corporate and sovereign debt in a sweet spot by reducing bond supply and prompting investors to seek higher-yielding debt – modest borrowing by emerging-market governments and companies has avoided a supply glut. Chang favors commodity-related currencies including the Russian ruble, Mexican peso and
READ MORE... →Predictions: Pimco’s Neel Kashkari said the Fed will start QE3 due to worsening unemployment, lower equity prices and risk of shocks from Europe. Europe take years to solve as Greece exits from the euro region, though not necessarily after the country’s elections. BlackRock’s Robert Doll said the Fed will need to see significantly
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