Special Report: The twilight of the Bond King
NEWPORT BEACH, California (Reuters) – He is the man who made bond investing sort of sexy – and now he may pay the price.
Over more than three decades, Bill Gross, co-founder of asset-management giant PIMCO, has made so much money for clients that he has become the barometer by which other bond traders are judged. His West Coast perch, prescient calls on the U.S. economy and devotion to yoga only added to the mystique.
The twilight of the Bond King
9 (Reuters) – He is
the man who made bond investing sort of sexy – and now he may
pay the price.
Over more than three decades, Bill Gross, co-founder of
asset-management giant PIMCO, has made so much money for clients
that he has become the barometer by which other bond traders are
judged. His West Coast perch, prescient calls on the U.S.
economy and devotion to yoga only added to the mystique.
Exclusive: Angelides to lead distressed mortgage firm
New York (Reuters) – Phil Angelides, formerly the chairman of a federal commission who led investigations into why the financial markets collapsed, is heading an investment group that hopes to “do a good thing” for America while turning a profit from the wreckage of the housing market.
The startup company, of which Angelides is executive chairman, seeks to raise money from investors to purchase troubled mortgages from banks and other financial institutions in order to help keep homeowners from being foreclosed upon, according to a January 4 letter reviewed by Reuters.
Financial crisis chair Angelides to lead distressed mortgage firm
New York, Jan 13 (Reuters) – Phil Angelides, formerly
the chairman of a federal commission who led investigations into
why the financial markets collapsed, is heading an investment
group that hopes to “do a good thing” for America while turning
a profit from the wreckage of the housing market.
The startup company, of which Angelides is executive
chairman, seeks to raise money from investors to purchase
troubled mortgages from banks and other financial institutions
in order to help keep homeowners from being foreclosed upon,
according to a Jan. 4 letter reviewed by Reuters.
MF Global’s aborted fruit salad solution to capital woes
(Reuters) – A few months before MF Global collapsed in bankruptcy, some top executives at the futures firm were talking about a plan code-named “Project Honeydew” as a way of freeing-up badly needed capital and cash.
Reuters has learned that in early September, MF Global reached out to Bank of New York Mellon Corp to inquire whether the big custodial bank would be interested in entering into a joint venture for processing and clearing certain customer transactions, according to four people familiar with the situation.
The new guy sitting at Steve Cohen’s side
By Matthew Goldstein
SAC Capital industrials trader Charles Simonian is getting a new job–one that’s very close to Steve Cohen.
The SAC Capital founder is moving Simonian onto his own small team of traders and analysts at the $14 billion firm, say sources. Simonian will work with Chandler Blockage in overseeing trading in industrial sector stocks for the so-called Cohen Account–a portfolio that manages between $2 billion and $3 billion in gross exposure to the market. (Gross exposure includes the value of long and short positions).
The taxman cometh for MF Global
By Matthew Goldstein
You can add the U.S. Internal Revenue Service to the long list of creditors and customers looking to get their money back from MF Global, the failed futures brokerage firm.
The IRS slapped a lien on what’s left of MF Global, seeking to recoup some $395,000 in unpaid taxes stemming from 2006 and 2007. The tax lien was filed with New York State’s division of corporations on Nov. 16, about three weeks after MF Global filed for bankruptcy.
PIMCO flagship had Dec outflows of $1.4 bln
By Matthew Goldstein and Jennifer Ablan
(Reuters) – The PIMCO Total Return Fund, the world’s largest bond fund, had $1.4 billion (897 million pounds) in outflows in December, according to fund analytics firm Morningstar.
The fund PTTRX.O, operated by Bill Gross, co-chief investment officer of Pacific Investment Management Co, suffered total redemptions of $5 billion in 2011, a year in which the fund underperformed benchmarks after betting heavily against U.S. Treasuries, which rallied on the year.
PIMCO flagship had December outflows of $1.4 bln – Morningstar
By Matthew Goldstein and Jennifer Ablan
(Reuters) – The PIMCO Total Return Fund, the world’s largest bond fund, had $1.4 billion in outflows in December, according to fund analytics firm Morningstar.
The fund, operated by Bill Gross, co-chief investment officer of Pacific Investment Management Co, suffered total redemptions of $5 billion in 2011, a year in which the fund underperformed benchmarks after betting heavily against U.S. Treasuries, which rallied on the year.
MF Global sold assets to Goldman before collapse: sources
By Lauren Tara LaCapra and Matthew Goldstein
(Reuters) – MF Global unloaded hundreds of millions of dollars’ worth of securities to Goldman Sachs in the days leading up to its collapse, according to two former MF Global employees with direct knowledge of the transactions. But it did not immediately receive payment from its clearing firm and lender, JPMorgan Chase & Co (JPM.N: Quote, Profile, Research, Stock Buzz), one of the sources said.
The sale of securities to Goldman occurred on October 27, just days before MF Global Holdings Ltd (MFGLQ.PK: Quote, Profile, Research, Stock Buzz) filed for bankruptcy on October 31, the ex-employees said. One of the employees said the transaction was cleared with JPMorgan Chase.
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