Never let it be said that Bill Gross
isn't a bold man.
Charles Stein reports
that the Pimco
CIO and co-founder is now doubling down on five-year treasuries because he believes the market has overestimated how much the Fed will raise rates.
Not everyone agrees, according to Stein. He quotes bond managers at Goldman Sachs Group
, BlackRock Inc.
and JPMorgan Chase & Co.
who say Gross is wrong and these assets are going to take a hit.
“Once they see the whites of the eyes of full employment, they will want to normalize rates at a faster clip,” Stein quotes Jonathan Beinner, co-head of global fixed income at Goldman Sachs Asset Management, in the article.
Is now a good time for Gross to go bold, again.
As everyone should know, Gross's bets have cost him big recently. His firm saw $30 billion in outflows the first quarter
following two other devastating quarters.
Pimco's pain has been so bad that parent Allianz sufferd a 28 percent earnings drop in the latest quarter
. Allianz's CEO Michael Diekmann
had to silence Pimco critics during a recent shareholder meeting.
And let us not forget the recent public relations migraine related to the departure of previous CEO Mohamed El-Erian
Never let it be said that Bill Gross isn't a bold man.
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