Tuesday, March 10, 2009

PIMCO Holds Almost $120 Billion In MBS

According to latest holding disclosures Bill Gross is elbow deep in cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 U.S. mortgage mess. Of $138 billion in total assets under management, PIMCO has 86% invested in mortgage-backed securities. Additionally, cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 recently demustachioed Newportian has been buying treasuries through cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 nose: from January to February, his TSY holdings have increased from -2% (oops, someone was short Uncle Sam. j/k: he is merely anocá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365r fan of cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 repo trade) to 15%. And as cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 observant ones will note, just cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365se two add to over 100%, this is indeed cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 case: PIMCO was using cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 highly generous Fed to borrow cheap, cheap cash resulting in a -25% cash position in February. Keeping all this in mind, explains Gross' fervent pitch to cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 government to buy Treasuries.
In February, Gross said it was “incumbent” upon cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 Federal Reserve to buy Treasuries but that he wouldn’t follow cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 central bank’s lead. Gross missed out on cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 biggest Treasury market rally in 14 years in 2008, saying that yields were too low because inflation will accelerate as cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 deficit surges.

“We wouldn’t buy Treasuries but we would buy bonds that are correlated and related to Treasuries with a higher yield,” Gross said in a Feb. 5 interview on Bloomberg Television.

A little odd that cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 last statement contradicts his actual position statement but when you are cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 4th branch of government things have a way of being a little extra liquid... and permitted.

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3 comments:

Anonymous said...

Tyler,

PIMCO has over $700 bn under management. The Total Return Bond Fund has a size of $138 bn. Crucial distinction.

The TR bond uses a benchmark (BarCap US aggregate) that includes some 45% of agency MBS and 40% Treasuries. Since Treasuries yield so little, and agency MBSs are in fact back by cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 government, PIMCO's logic goes, it makes a lot of sense to own cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 latter as a substitute for cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 former.

I also understand that recent Ts coming into PIMCO's portfolios are mainly TIPs, also underpriced compared to nominal Ts.

BB

Anonymous said...

Their benchmark is bogus.....cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365y are a hedge fund plan and simple.

Anonymous said...

I think it's time that little bitch Bill is left holding cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 bag!