Posts filed under “Fixed Income/Interest Rates”
Expectations of economists and pundits notwithstanding, interest rates are falling around the world. Despite the end of quantitative easing in the U.S., and the possibility that the Federal Reserve will raise rates later this year, the long-feared economy-killing yield spike has yet to appear. During the past few months, I have been discussing this with…Read More
Between a Tweet and a full column is a netherworld where ideas often get lost. Rather than let these tweener concepts slip through the cracks, now and again I like to gather them in one place (see, e.g., this) — if only to see if any discernible patterns emerge. Here’s my latest run of random ideas: 1. Is there a shortage of A-rated…Read More
“Some day interest rates will go up. Until then the Treasury bears are missing one of the greatest bond rallies in history.” — Jim Bianco, Bianco Research Since 2015 began, everyone has been fixated on the U.S. dollar and oil prices. I want to direct your attention to what may be the greatest show now…Read More
This week, the “Masters in Business” podcast features Part 1 of an interview with famous bond investor Bill Gross, formerly of Pimco, now with Janus Capital.
Gross sat down with me in the Bloomberg studios in New York for an extensive two-hour interview. It was the first time I’ve met Gross, and I found him to be intelligent and forthright, answering all of my questions directly and unambiguously.
We discussed the early days at Pacific Life, the founding of Pimco and his early influences and mentors. He talked about the role of Black Jack in influencing his investing and risk-taking philosophy.
I was especially intrigued by his descriptions of what it was like to manage assets in the 1970s and ’80s. He said that during the 1987 crash, he sat transfixed, “staring at the screen like a deer in the headlights.” He vowed to make sure that during future crises that wouldn’t happen again.
He also said quite a few surprising things — about the Federal Reserve and quantitative easing, about what investors can learn from gamblers and about his creation of Portable Alpha.
Next week, “Masters in Business” will feature Part 2 of the interview.
1% on 10-year Note? David R. Kotok Cumberland Advisors, January 13, 2015 “What if the Fed doesn’t raise rates at all this year? There’s certainly a good amount of volatility possible with the ECB meeting Jan 22, the Greek election Jan 25, and the FOMC announcement Jan 28.” – Don Rissmiller,…Read More
Last year was a time of change and controversy for Bill Gross: His unplanned exit from Pacific Investment Management Co. in September, a whisper campaign before the palace coup, a new job at Janus Capital. Amid all this, Gross is most upset about one thing: Despite 40 years at the top of the fixed-income world,…Read More
From Deutsche Bank: The ownership structure of US Treasuries is fascinating: 50% is held by foreigners and 20% is held by the Fed. Domestic accounts hold only 30% of Treasuries, down from 75% in the early 1990s, see chart below. Also, attached please find our 105 page update on Who is buying Treasuries, Mortgages, Credit,…Read More