Bill Gross will be one of the few to benefit from the Federal Reserve's announcement this afternoon. The legendary money manager, who oversees more than $1.2 trillion at Pacific Investment Management Co., stands to profit off the plan hatched by the nation's central bank. The Fed announced that it will buy between $850 to $900 billion of U.S. government debt, also known as Treasuries, through June... [more]
Bill Gross will be one of the few to benefit from the Federal Reserve's announcement this afternoon.
The legendary money manager, who oversees more than $1.2 trillion at Pacific Investment Management Co., stands to profit off the plan hatched by the nation's central bank. The Fed announced that it will buy between $850 to $900 billion of U.S. government debt, also known as Treasuries, through June to spur the recovery. Over the coming months, the Fed will then communicate its specific plans well ahead of any such purchases, allowing wealthy investors and firms a chance to buy those assets first so they can sell it back to the Fed at a profit. Folks like Gross will be the biggest beneficiaries.
http://www.huffingtonpost.com/2010/11/03/federal-reserve-qe2_n_778392.html[less]
Response by Wbottom
over 15 years ago
Posts: 2142
Member since: May 2010
hey redbaiter--
there is nothing that prevents you from buying 5,7,10 or 30 year tnote futures (remember the stuff you know so well of and use to hedge your mtge portfolio?)--they trade in 100k increments with roughly 50:1 leverage based on maintenance margin--so for 20k or so you can command 1mm in principal exposure, anywhere youd like along the curve the fed is buying--the futures abitrage tightly enough to any treasury the fed will be buying to be proxy--so go buy some if it's so easy
another layup trade from redbaiter!! cash that ss check, and buy treasuries!! youll be rich. then you can really savor those bush tax cuts instead on droning on in service of the koch bros.
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Response by aboutready
over 15 years ago
Posts: 16354
Member since: Oct 2007
hey, two of our 401k's are heavily invested in pimco and have been for a fair amount of time. we've done well! not s&p well, but well without a hell of a lot of risk.
it's not JUST gross who benefits. from your post you'd think that he only invests his own money, or GS's.
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Response by stevejhx
over 15 years ago
Posts: 12656
Member since: Feb 2008
Poor Riversider - ignorance on the port, and the starboard.
Maybe LICC would like to chime in with a retort, which I'm sure he thinks is French for a leftover Danish.
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Response by Wbottom
over 15 years ago
Posts: 2142
Member since: May 2010
wait til qe starts to unwind
and gross said that crap about flipping mortgages to the fed because he is against qe
he's smart enough to see the consequences to him when qe unwinds
whatever the case--you apparently didnt (again) read the pasty you applied here which clkaimed only big financial entities could benefit from qe
i dont think you or anyone long any variation on high-grade fixed income product is necessarily a big financial entity
enuff this--your shit is random and completely ignorant here and most of the time--my bad: i read one of your pasties and assumed you had, and would respond intelligently to my comment---duhhh me
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Response by stevejhx
over 15 years ago
Posts: 12656
Member since: Feb 2008
When this is unwound it won't be pretty. Pretty much everybody's leveraged up on cheap money now, you're seeing stocks & gold rise at the same time - never works - stocks increasing on good news ^& bad (like today's jobs reports).
...which = bubble.
WB - don't expect RS to ever respond intelligently to anything: Ayn Rand doesn't come with a glossary.
hey redbaiter--
there is nothing that prevents you from buying 5,7,10 or 30 year tnote futures (remember the stuff you know so well of and use to hedge your mtge portfolio?)--they trade in 100k increments with roughly 50:1 leverage based on maintenance margin--so for 20k or so you can command 1mm in principal exposure, anywhere youd like along the curve the fed is buying--the futures abitrage tightly enough to any treasury the fed will be buying to be proxy--so go buy some if it's so easy
another layup trade from redbaiter!! cash that ss check, and buy treasuries!! youll be rich. then you can really savor those bush tax cuts instead on droning on in service of the koch bros.
hey, two of our 401k's are heavily invested in pimco and have been for a fair amount of time. we've done well! not s&p well, but well without a hell of a lot of risk.
it's not JUST gross who benefits. from your post you'd think that he only invests his own money, or GS's.
Poor Riversider - ignorance on the port, and the starboard.
Maybe LICC would like to chime in with a retort, which I'm sure he thinks is French for a leftover Danish.
wait til qe starts to unwind
and gross said that crap about flipping mortgages to the fed because he is against qe
he's smart enough to see the consequences to him when qe unwinds
whatever the case--you apparently didnt (again) read the pasty you applied here which clkaimed only big financial entities could benefit from qe
i dont think you or anyone long any variation on high-grade fixed income product is necessarily a big financial entity
enuff this--your shit is random and completely ignorant here and most of the time--my bad: i read one of your pasties and assumed you had, and would respond intelligently to my comment---duhhh me
When this is unwound it won't be pretty. Pretty much everybody's leveraged up on cheap money now, you're seeing stocks & gold rise at the same time - never works - stocks increasing on good news ^& bad (like today's jobs reports).
...which = bubble.
WB - don't expect RS to ever respond intelligently to anything: Ayn Rand doesn't come with a glossary.