Bonds

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Bill Gross

Bill Gross said in an exclusive interview with CNBC on Monday that economic growth will likely fall to 2 percent. “Yes, we’re starting from a 3 percent growth economy that will probably persist for another quarter or so,” he said. “We get back to a relatively new structural growth rate, which is not 3 but …

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European Central Bank and Euro Symbol in Frankfurt, Germany.

It’s hard to believe it’s just a few years since countries like Ireland and Spain had to go cap-in-hand to international lenders – at least if you look at their bond yields. Ireland’s 10-year bond yield, usually reflective of a country’s economic performance, hit a record low of 1.477 percent Monday, while Spanish 10-year bond …

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Traders on the floor of the New York Stock Exchange.

Blow-away Philly Fed data at a 1993 level, slightly stronger consumer inflation data, a surprise jump in home sales and still sub-300,000 weekly jobless claims. None of it has even ruffled the bond market. Treasury yields stayed around levels they were at all morning Thursday, but the volume was higher than usual. The cash market …

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A man walks past a Pacific Investment Management Company LLC (PIMCO) advertisment which is displayed on a building in Hong Kong, China.

Investors have been withdrawing money aggressively out of bond funds recently, and it’s pretty much all Pimco’s fault. In fact, when excluding flows from the Newport Beach, California-based fixed income behemoth, all other bond funds actually have been taking in money, according to calculations from Morningstar that highlight just how pronounced a reaction investors have …

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Bill Gross

Fixed income guru Bill Gross may attract headlines, but many traders are betting that he won’t be able to help his new employer. Janus Capital Group, which welcomed Gross in September, has seen a 7 percent increase over the past month in its percent of shares outstanding on loan, according to data from Markit. This …

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The high-profile departure of Bill Gross has cost Pimco another customer. As the fallout continues since Gross left the Newport Beach, California-based asset manager last month, the Arkansas Teacher Retirement System said it has cut ties, according to a report in Pensions & Investments. Pimco had managed about $475 million for the fund as part …

Jim Young | Reuters
Bill Gross

In his first on-the-record comments since joining Janus Capital, Bill Gross said global economic growth is declining, causing central banks to take an aggressive stance unlikely to change soon. That’s problematic in some sense, though: Measures from institutions like the Federal Reserve and others are causing distortions in financial markets that need to be corrected. “A …

Q4 outlook for bonds & commodities

What’s next for bonds and commodities in the fourth quarter?

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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 …