Nov 15

Bill Gross and Mohamed El-Erian

– Pimco Paid Gross, El-Erian Over Half A Billion Dollars In 2013 Bonuses (ZeroHedge, Nov 14,  2014):

And a stunner just out of of Bloomberg:

PIMCO PAID GROSS $290 MILLION BONUS FOR 2013, DOCUMENT SHOWS
PIMCO PAID FORMER CEO EL-ERIAN ABOUT $230 MLN BONUS IN 2013

More from the source:

Pacific Investment Management Co. paid its former Chief Investment Officer Bill Gross a bonus of about $290 million in 2013, a year in which his Total Return Fund trailed a majority of peers, according to documents provided to Bloomberg View by someone with knowledge of Pimco’s bonus policies. Continue reading »

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Sep 30

Gross To Have Final Laugh? Whopping Two-Thirds Of PIMCO’s Flagship Fund May Be Withdrawn (ZeroHedge, Sep 29, 2014):

The reason why the first article we wrote on Friday after news hit that PIMCO co-founder was shockingly leaving the firm on Friday, was listing the massive bond fund’s biggest holdings, was because it was only a matter of time: it, being of course, the massive redemptions that would follow Gross’ departure by people that his 30+ tenure at the bond fund made very rich, and who couldn’t care less about a brief central planning-inspired flame out. After all Gross isn’t the first person who has lost the plotline due to the Fed’s manipulation of every market. Continue reading »

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Sep 26

PIMCO: Here’s What It Owns (ZeroHedge, Sep 26, 2014):

PIMCO is big. Scratch that, it’s massive: after all it holds over $2 trillion in global securities, mostly bond-related. It is so big, in fact, it takes two pages just to list the number of funds that comprise it, let alone the securities that these funds actually own. Which is a problem when trying to estimate the impact of what a possible asset-shift, if not outright liqudation of some/all of PIMCO’s holdings would have.  Yet one has to start somewhere, and the somewhere probably should be with the list of the TRF’s biggest holdings as a % of NAV. Here it is.

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Sep 26

Bill Gross Quits PIMCO, Which He Co-Founded, Joining Janus (ZeroHedge, Sep 26, 2014):

After co-founding PIMCO in 1971, Bill Gross has called it quits…

  • *WILLIAM H. GROSS JOINS JANUS CAPITAL
  • *JANUS:GROSS TO START MANAGING FUND,RELATED STRATEGIES OCT.6,’14

“I look forward to returning my full focus to the fixed income markets and investing, giving up many of the complexities that go with managing a large, complicated organization,” said Mr. Gross.

Janus stock is +20% on the news. 40% now!) Continue reading »

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Sep 26

“You Can’t Fire Me, I Quit” – PIMCO Was Preparing To Fire Gross (ZeroHedge, Sep 26, 2014):

With more than $65 billion pulled from PIMCO’s funds since May 2013, Bill Gross’ firm had been struggling amid spotty performance and it seems, according to The Wall Street Journal, PIMCO (not Allianz) was set to fire the 70-year old bond king this weekend. It seems clear that Mr. Gross move was pre-emptive as sources cite his “increasingly erratic behavior” and ultimatums as factors in the move. Assumptions about Mohamed El-Erian returning to run the company have been denied. Some have estimated PIMCO could see a further 10-30% in fund outflows on the back of Mr. Gross’ departure.

As The Wall Street Journal reports, Continue reading »

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Jul 12

Wile_E_Coyote-Dont_Look_Down

–  CEO Of Europe’s Largest Insurer Pops The Utopia Bubble: “Nothing Is Solved And Everybody Knows It” (ZeroHedge, July 11, 2014):

It’s one thing for a tinfoil fringe blog to repeat, month after month, that nothing in Europe has been fixed, that Draghi’s disastrous policies are merely concentraing and stockpiling even more unresolved problems – for now ignored courtesy of the gentle sprinkle of ZIRP, or rather NIRP “fairy dust” – and that just like Portugal showed panic can grip the entire continent literally overnight because everyone knows this. It is something entirely different for the CEO of Europe’s largest insurer to make the same statement.

From Bloomberg:

When asking Allianz SE’s chief investment officer about the euro area’s sovereign debt woes, be prepared for an emphatic response.

The fundamental problems are not solved and everybody knows it,” Maximilian Zimmerer said at Bloomberg LP’s London office. The “euro crisis is not over,” he said.

While extraordinary stimulus from the European Central Bank has encouraged investors to pile into the region’s government bonds this year, that’s not a sufficient remedy for Zimmerer, who oversees 556 billion euros ($757 billion) at Europe’s largest insurer. Countries are still building up their debt piles, and that’s storing up trouble for the future, he said.

Continue reading »

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Mar 05

PIMCO is an autonomous subsidiary of Allianz.

Nobody in his right mind (let alone Bill Gross, ‘the king of bonds’) would by toxic European debt.

I highly doubt that PIMCO is a FOMO (aka Fear of Missing Out) buyer.

From the article:

Recall that it was the IMF itself which said in October of 2012 that European banks needs to sell $4.5 trillion in assets until 2014.”

The elitists are intentionally running everything into the ground and there will be nothing left.

Again, prepare for total collapse.


billl-gross

PIMCO To Buy Billions In European Toxic Debt (ZeroHedge, March 5, 2014)

Earlier today we were surprised when none other than uber central-planning skeptic, not to mention bond fund manager, Bill Gross threw in the towel and in his latest letter advocated the purchase of risk assets – and Bill Gross is the last person needing reminding that in a day and age when the 10 Year yields just barely over 2.5%, this means not bonds but stocks. The surprise, however, promptly disappeared when we realized that PIMCO is merely the  latest entrant in the scramble for yield game following, with a substantial delay to all of its other “alternative” asset management peers, right into ground zero: European toxic debt.

Continue reading »

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Feb 16

A&G’s AIG Moment Approaching: Moody’s Downgrades Generali, Cuts Megainsurer Allianz Outlook To Negative (ZeroHedge, Feb. 15, 2012):

Don’t worry though, those who don’t understand jack shit will tell you it is all contained. But please ask them why – and ask them why Lehman wasn’t when everyone said it too was.

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Nov 12

From the article.

So instead of selling, Italian banks are doing all they can to dodecatuple down and…buy!?

Right… Thank you for putting that target sign on your back.

“Sold To You”: European Banks Quietly Dumping €300 Billion In Italian Debt (ZeroHedge, Nov. 11, 2011):

While the market is ripping today on absolutely nothing (earlier we noted the rotation of muppet X with muppet Y – this changes nothing but who cares), BTPs are soaring, and confusion is prevalent, one thing is certain: we now know who is not buying Italian bonds. As IFR reports, “European banks are planning to dump more of the €300bn they own in Italian government debt, as they seek to pre-empt a worsening of the region’s debt crisis and avoid crippling writedowns – a move that could scupper the European Central Bank’s efforts to bring down soaring yields. Still reeling from heavy losses on money they lent to Greece, lenders are keen not to make the same mistake twice.Then, under the pressure of governments and a hope that credit default swaps would protect them against heavy losses, they held on until it was too late to sell.” And for our European readers who may be wondering who the dumb money will be as this tsellnami unleashes, we have one word: you. “With the ECB providing a bid for Italian bonds that might not otherwise exist, board members at some of Europe’s largest bank say now is the time to accelerate disposals. Many are also reversing long-standing policies of buying into new Italian bond issues, denying Rome an important base of support.” And there you have your explanation for today’s action – yet another headfake to get the idiot money foaming at the mouths while the insolvent banks quietly dump everything, sending the EURUSD once again higher as EUR repatriation resumes, this time with feeling.

As a reminder, Germany has made it an explicit condition of its participation in the now irrelevant EFSF that the SMP program which is the only program currently functioning to provide secondary market support, be unwound shortly. The SMP currently has just under €200 billion in total bond holdings. Does anyone really think Germany will allow the monetization fund to increase by 150% before Merkel says something? We doubt it. But we know one party that would be delighted if the SMP were to monetize everything: PIMCO parent Allianz, which borrowed a line right out of BlackRock and told the market it is effectively an idiot, and does not reflect fundamentals. Via the FT: “Allianz insisted it was unworried by the political and financial turmoil in Italy as the insurer, Europe’s largest by market capitalisation, suffered from the impact of the eurozone crisis on its bond investments and corporate holdings. The German group – which considers Italy a “second home market”, according to Oliver Bäte, chief financial officer – has some of the biggest sovereign exposure to Italy of any non-Italian financial institution, with government bonds worth €25.6bn at the end of the third quarter, equal to more than 6 per cent of the company’s €413bn fixed income portfolio.Is it clear now why the EFSF as a €1 trillion vacuum cleaner idea came straight out of Allianz? And is it clear now who has the most to lose with the failure of the EFSF as a multifunctional Swiss Army bailout knife?

Continue reading »

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Oct 21


The 1318 transnational corporations that form the core of the economy. Superconnected companies are red, very connected companies are yellow. The size of the dot represents revenue (Image: PLoS One)

Revealed – the capitalist network that runs the world (New Scientist, Oct. 19, 2011):

AS PROTESTS against financial power sweep the world this week, science may have confirmed the protesters’ worst fears. An analysis of the relationships between 43,000 transnational corporations has identified a relatively small group of companies, mainly banks, with disproportionate power over the global economy.

The study’s assumptions have attracted some criticism, but complex systems analysts contacted by New Scientist say it is a unique effort to untangle control in the global economy. Pushing the analysis further, they say, could help to identify ways of making global capitalism more stable.

The idea that a few bankers control a large chunk of the global economy might not seem like news to New York’s Occupy Wall Street movement and protesters elsewhere (see photo). But the study, by a trio of complex systems theorists at the Swiss Federal Institute of Technology in Zurich, is the first to go beyond ideology to empirically identify such a network of power. It combines the mathematics long used to model natural systems with comprehensive corporate data to map ownership among the world’s transnational corporations (TNCs).

“Reality is so complex, we must move away from dogma, whether it’s conspiracy theories or free-market,” says James Glattfelder. “Our analysis is reality-based.”

Continue reading »

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Jun 23

Greek cabinet approves austerity budget (Telegraph, June 22, 2011):

Pimco, the world’s biggest bond fund, shrugged off last night’s vote of confidence in the Greek government warning that it expects Greece and other European economies to default on their debts to resolve their problems.

“For the next three years, we’re going to see different economies work out different problems. For European economies, especially Greece, it would be through default,” Mohamed El-Erian, chief executive of Pimco, said in Taipei on Wednesday in a video conference.

“Nothing has been done to enhance growth,” he said. “No single (Greek) indicator has shown strength. They are afraid a restructuring would hurt European banks.”

However, he doubted a Greek default could trigger another global financial crisis: “Ireland, Portugal, Italy and Spain would have to be involved. But Greece is too small in terms of economic impact.”

Horacio Valeiras, chief investment officer of fund firm Allianz Global Investors Capital (AGIC), predicted that Ireland and Portugal, countries that also received financial bailouts in the wake of the global credit crisis, will have to restructure their debts.

“We are not investing in Greece, Ireland, Spain and Portugal,” he said at the press briefing. He sees default in Greece as “inevitable”.

California-based Pimco (Pacific Investment Management Company), is based in California and is the world’s biggest bond fund manager with nearly $1.3 trillion in assets under management.

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Nov 07

Nov. 8 (Bloomberg) — Allianz SE, Europe’s second-biggest insurer by market-value, posted a 2 billion-euro ($2.6 billion) loss and said it may miss operating profit forecasts for this year and next because of the turmoil in financial markets.

Allianz had a net loss including discontinued operations in the third quarter, compared with net income of 1.9 billion euros a year earlier, the Munich-based insurer said in a statement today. That was less than the 3.85 billion-euro estimate of 14 analysts surveyed by Bloomberg. Net income from continuing operations, which reflects the sale of Dresdner, was 545 million euros, the company said, missing analysts’ estimates of 782 million euros.

“Without a major equity market recovery, the operating profit outlook of 9 billion euros before banking for this year and next year cannot be reached,” Allianz Chief Financial Officer Helmut Perlet said in the statement.

Allianz, led by Chief Executive Officer Michael Diekmann, agreed on Aug. 31 to sell Dresdner Bank to Frankfurt-based Commerzbank AG for cash and stock. Commerzbank shares lost about 40 percent of their value in the month ended Sept. 30. Discontinued operations, which reflect the sale of Dresdner effective from Sept. 1, accounted for “transaction-based impairments according to IFRS 5” of 1.4 billion euros as well as for a net loss of 1.2 billion euros from Dresdner’s operations, Allianz said.

Continue reading »

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