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from Breakingviews:

When denials can be as instructive as the truth

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By Rob Cox
The author is a Reuters Breakingviews columnist. The opinions expressed are his own.

Denials can be as instructive as truths – and if not, they can be at least more entertaining. On Thursday a fellow fingered as the father of bitcoin rejected a report he founded the crypto-currency. In the shadowy world of virtual money, such confusion may not be so surprising – nor matter. Not so with the bizarre defiance of $2 trillion “Bond King” Bill Gross.

Take the bitcoin brouhaha. Newsweek magazine revealed Dorian Satoshi Nakamoto as the unlikely disrupter of the currency world. He is described as owning some $400 million of virtual coin, yet lives modestly outside Los Angeles and collects model trains.

In the piece, the California man never quite admits to being THE Satoshi Nakamoto identified in bitcoin circles as the author of the currency’s 2008 founding manifesto, “Bitcoin: A Peer-to-Peer Electronic Cash System.” Now the 64-year old man categorically denies any involvement. The character known only virtually as Satoshi Nakamoto also said Newsweek had the wrong Satoshi.

from Unstructured Finance:

Money manager titans who can’t wait until 2014

The year can't end fast enough for some of the world's biggest investors.

Bill Gross, who many like to consider the King of Bonds, lost one of his prized titles last week when his PIMCO Total Return Fund was stripped of its status as the world's largest mutual fund because of lagging performance and a swamp of investor redemptions.

The PIMCO Total Return Fund -- somewhat of a benchmark for many bond fund managers -- had outflows of $4.4 billion in October, marking the fund's sixth straight month of investor withdrawals, and lowered its assets to $248 billion, according to Morningstar.

from The Edgy Optimist:

Bonds are not safe

The old stock market cliché “sell in May, and go away” had so far proved untrue this year. Instead, it is the bond market -- so often perceived as steady, low risk and dependable -- that has bitten investors. In fact, June was one of the worst months for bonds in many years. The declines were steep enough to serve as an acute reminder that nothing, and I do mean nothing, in the financial world is without risk.

Stocks have been rising with volatility for more than four years. Yet money has poured into bonds. That reversed dramatically in June, with investors pulling $28 billion from bond funds, the most since monthly records began in 2007. Pimco, one of the largest bond managers in the world, saw its normally staid and stable Total Return Fund drop by 2.6 percent, and investors yanked $14 billion from Pimco alone.

from Unstructured Finance:

The sultans of swing

Although most investors have been pleased with the steadily rising U.S stock market over the past six months, funds that profit when markets are convulsing are licking their wounds.

With market stress at multi-year lows, volatility hedge funds returned just 1.16 percent in the first quarter, compared with 3.7 percent for the broader hedge fund group.

from Unstructured Finance:

Obama hearts El-Erian

By Sam Forgione and Matthew Goldstein

OK, so it's not a big gig like being nominated to head the Treasury Dept. But President Obama's decision to tap PIMCO's Mohamed El-Erian to head the President's Global Development Council is no insignificant matter.

As the co-chief investment officer of the giant bond shop founded by Bill Gross, El-Erian is seen as the eventual heir apparent to run the Newport Beach, Calif firm. And El-Erian increasingly has become one of PIMCO's most visible faces---maybe even more than Gross himself these days--when it comes to talking about what ails the U.S. and global economies.

from Unstructured Finance:

Gundlach doesn’t whine over his stolen wine

By Jennifer Ablan and Matthew Goldstein

Who said bonds are boring? In recent days, Jeffrey Gundlach, the new king of the fixed-income world, has been dominating headlines with his lengthy CNBC interview on everything from counterparty risk to the market’s love affair with Apple stock to talk in the blogosphere about Gundlach’s pricey Santa Monica, Calif. residence being burglarized of more than $10 million in assets.

Against this backdrop, Gundlach’s firm, DoubleLine, hit a huge milestone this week as well, hitting $45 billion in assets under management.

from Unstructured Finance:

UF Weekend reads – The PIMCO edition

Jenn Ablan likes to tell me that people are always writing about PIMCO and Bill Gross, the long reigning "king of bonds." And when you think of it there's a lot of truth to that assertion.

Gross' mammoth $263 billion Total Return Fund gets endless coverage because--by its very size--it really is the bond market. It's one reason why so much ink is spilled whenever the Total Return Fund has a month where investors pull more money out of the fund than put in.  And it's why there's so much analysis of what Gross & Co. are doing with Treasuries and mortgage-backed securities--and whether they are using lots of leverage and derivatives to boost exposures.

from Unstructured Finance:

UF Weekend Reads

The latest offerings by our Sam Forgione include a little Bridgewater, PIMCO and Jamie.

From National Journal:

Jim Tankersley airs Nick Hanauer's championing of the middle class after Hanauer's TED Talk was pulled.

from Unstructured Finance:

UF’s Weekend Reads

We're introducing a new feature on UF: a link to some weekend reads. Here is the first edition complied by Sam Forgione.

 

From The Guardian:

Andrew Balls, head of European investment for PIMCO from its London office, shares similar views on Europe and regulation with his brother, Ed Balls, of the British Labour Party. Brotherly love even extended to one of PIMCO’s major investment decisions: when Bill Gross decided to sell UK government debt in 2010, and Andrew Balls allegedly disagreed with the move, apparently backing his brother’s political status.

from Unstructured Finance:

PIMCO and BlackRock go strolling down K Street

By Jennifer Ablan and Matthew Goldstein

Wall Street may hate financial regulatory reform, but lobbyists certainly love it—especially ones working on behalf of giant asset managers PIMCO and BlackRock, which control a total of nearly $5 trillion in assets.

Last year, PIMCO and BlackRock both upped their lobbying expenditures in a big way.

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