Bonds

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Bill Gross

Pimco and its parent firm Allianz moved to stem concern over Bill Gross‘ surprise exit Friday, assuring investors that the relationship remains solid and they expect client loss to be minimal. Officials from the two firms Monday looked to downplay the loss of Gross, who founded the firm 43 years ago. Pimco CEO Doug Hodge emphasized …

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Bill Gross

In a move that stunned Wall Street, bond guru Bill Gross is joining Janus Capital Group, effective Sept. 29, the company announced Friday. Gross is leaving as chief investment officer of Pimco, the company he founded, after a remarkable 43-year tenure. Gross was about to be fired from the Newport Beach, California-based firm, due to what was termed …

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Bill Gross, co-founder and co-chief investment officer of Pimco, speaks in Chicago, June 19, 2014.

The sudden exit of Bill Gross from Pimco sparked a knee-jerk selloff in the Treasury market, a drop in Pimco closed-end funds and rallies in competitors’ shares as traders gamed whether the world’s largest bond house would see an exodus of investors and a repositioning in its funds. Treasury yields moved higher, with the 10-year going from …

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Even as retail investors shy away, Wall Street is still making a dash for trash. In fact, the recent exodus of funds from high-yield bonds has only whetted the appetite of institutional investors, who are using the slump in junk prices as a buying opportunity, according to an analysis from the Wall Street Journal. The mom-and-pop crowd ditched …

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Producer price inflation data and industrial production are among the reports expected Friday, as traders attempt to decipher whether the bond market or the stock market is sending the right signal. Stocks were on track after Thursday’s gains for the best weekly performance since July 3. The bond market, meanwhile, plumbed yields at the bottom …

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Declining credit standards among bond issuers may be worrying analysts, but the papers’ buyers, especially exchange traded funds (ETFs), could also pose big market risks if liquidity dries up. “The ownership is more sensitive to retail flows,” with around 37 percent of U.S. corporate credit held by households and funds, Alberto Gallo, head of European …

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Bonds have long been viewed as a port in the storm, a low-risk asset class that creates consistent cash flow and helps to balance equity market mood swings. But with rates for Treasuries and other safe haven securities barely keeping pace with inflation—and in some cases falling behind—yield-hungry investors have been forced to purchase fixed-income …

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There’s just no making sense of the government bond market. At a time when strategists are treating Treausrys like a patch of poison ivy growing in the blooming stock market garden, investor money continues to rain in. “When you think you have things figured out and you play your hand, something seems” to change, Kim …

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Traders signal orders on the financial floor at CME Group's Chicago Board of Trade.

2014 was supposed to be the year the bond market came crumbling down. So was last year. So, probably, will next year. The anticipation, of course, is that bond-busting inflation is right around the corner and as the Federal Reserve winds down its monthly bond-buying program—quantitative easing—while the economy improves. Yet despite all the anticipation of money …

Land of confusion

Despite the strong gains this month, many smart investors are more than just a little perplexed, stocks are up, but so are bonds and its not just because the Federal Reserve is buying them. So what’s going on?

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Veteran trader Art Cashin said Thursday’s rebound in the 10-year yield could indicate a stronger economy. Read MoreJeremy Siegel: Here’s what will send yields higher “It would appear that the reversal in the bond market was above internal technicals. It had gotten a little overbought at the point,” Cashin, director floor operations at the NYSE …

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Trader on the floor of the New York Stock Exchange, May 21, 2014.

Bond yields have stymied widespread expectations they would rise this year and analysts seeking a reason may not need to dig any deeper than simple supply and demand. “On the supply side, bond issuance plummeted, down 19 percent year-to-date. Amidst short supply, a surge in positioning and bond inflows has pushed yields lower,” Deutsche Bank said in …

Why yields could fall

As stocks tumbled, so did yields on the benchmark 10-year treasury note. They are now below 2.5 percent, a seven-month low. So what’s driving bond yields lower and will they drop even further. Steve Liesman gives three reasons why they could.

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The new year has not been kind to Bill “Bond King” Gross, but he is not alone. His massive fixed income-focused investment manager Pimco has lagged performance benchmarks, the culture of the firm has come under scrutiny since the departure of CEO Mohamed El-Erian and more than $5 billion has already been pulled by investors in January and February …

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Just days after his noisy exit from Pimco, Mohamed El-Erian has joined the round-the-clock cacophony that is Twitter. The former co-CEO of the Newport Beach, Calif., bond giant posted his first tweet Monday morning at around 10 a.m. to announce his presence. He officially left Pimco on Friday. By late morning, El-Erian had busied himself posting four …