Yesterday was the one year anniversary of QE1 ending. QE1 was a $1.25 trillion Fed mortgage bond buying campaign that began January 2009. Then QE2, a $600b Fed Treasury bond buying campaign began November 2010 and will end June 30. Last month, bond king Bill Gross asked who would buy these securities when the government [...]

What is the bond market focused on this week? One item that has really turned some heads recently was the letter from PIMCO’s Bill Gross, stating that its Total Return Fund sold all of its Treasury holdings. Mr. Gross has been right and wrong in the past. One quote said, “PIMCO’s not sticking around to [...]

Today Bill Gross of PIMCO, the world’s largest bond manager, questioned who will buy Treasuries in the near future when the government stops its Treasury bond buying (known as quantitative easing or QE2). That’s a harder question to answer until we see that program coming closer to it’s target June 30 end date. But the [...]

In his latest monthly Investment Outlook, bond king Bill Gross discusses what might happen when the Fed stops buying bonds to keep rates low and stimulate the economy. Below is a notable chart of who’s been buying U.S. Treasuries and who will. Interestingly, the chart calls his own reign as bond king into question. His [...]

Let’s see: the US government helps out BofA, and is now asking them to buyback loans? An investor group (including PIMCO, BlackRock, and the Federal Reserve Bank of New York) is deciding whether to sue BofA even after BofA’s recent loan buyback settlement with Fannie and Freddie.

Fed’s Conflicting Recovery Agenda The Federal Reserve Bank of New York has joined forces with BlackRock, PIMCO and other major bond investors in trying to force Bank of America to repurchase $47b of mortgages that were packaged into securities. Bank of America defended its position. “We’re not responsible for the poor performance of loans as [...]

PIMCO head Bill Gross just published his June Investment Outlook in which he explores whether developed countries’ debt burdens stunt economic growth and investment returns. His conclusion: the world’s debt obligations mean a likely outcome for investors is 4-6% annualized returns for a diversified portfolio of stocks and bonds. Regarding Greece, he said that “there [...]

Displayed below are three pictures of the same velvet painting entitled Ride The Storm.

What were Adam’s first words to Eve? They were rumored to have been: “Stand back Eve, I’m not sure how much bigger this thing is going to get!” How big is the current fraud trend, or so it seems, going to become? Fraud continues to be everywhere in the newspapers. Obviously the risk of perpetrating [...]

In his March Investment Outlook, Bill Gross head of PIMCO, the world’s largest bond manager, does a mock Q&A as though he was testifying before Congress about the financial crisis, its origins, how long it will last, what needs to be done with the banks, and where people should invest their money. Required reading. Below [...]