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PIMCO Sells $26.5 Billion In Treasuries And MBS In November, Goes To Cash
Pimco's flagship Total Return Fund released its November data: the fund continues liquidating its MBS holdings, selling another $7 billion in November (after dumping $10 billion in October), and bringing the total to the lowest it has held of this security, at $23.9 billion. Keep in mind TRF held just under $120 billion of Mortgage Securities in February: a nearly $100 billion reduction. Thank you Ben Bernanke Bid. Mortgages are not the only class getting cleansed by Gross: the world's biggest bond fund also sold $20 billion of Treasuries, bringing its govvy holdings to $101.7 billion, down from $121.3 billion in November. The biggest beneficiary: cash, which increased from a net short position of -$13.5 billion to $14 billion. And in the meantime, the fund still made a boatload: total AUM in TRF increased from $192.6 billion to $199.4 Gross is sticking to his pessimistic view and liquidating. Who is buying?
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I give. Who is? And how much for the MBS?
Who? The buyer of first, last and only resort. That or one of their other CB proxies.
The FED has little choice but consume the mixture they brewed, but at the end of the day the tax-payer is subsidizing the largesse, indeed. The 100B in MBS will surely end up amounting to $50-70B and the paper difference will be burned to keep us warm.
What a Ponzi scheme! Long live capitalism.... It is is but a state of the mind.
he biggest beneficiary: cash, which increased from a net short position of -$13.5 billion to $14 billion. online graduate degrees | online certificates | online undergraduate certificates | online graduate certificates
I think the "who is buying" is referring to who is buying into the fund. probably anyone and everyone. always trust the bond guys over sell side equity shills.
Ben has been buying the MBS and primary dealers have been buying the treasuries. what a circle jerk.
The U.S. taxpayer. We are heavy on the bid to infinity.
Excellent comment.
I hope he hasnt been buying Gold.
Always watch the rats, not the people. The rats know when to leave the ship, even if the people don't.
"Always watch the rats..."
That piece of advise can do more to save your ass and your wallet than any other rule of thumb I know.
cant wait till they run off to china
a rat will piss in his own nest, and If you win the rat race, you're still a rat
Seriously - who is buying? If China, Japan, the U.K., and PIMCO are selling longer dated treasuries - who is buying?
perhaps banks. lots of excess reserves and they can pick up an easy 4.40%
That makes sense - but 30 years? Seems risky to me.
riskier than what? it's all relative
Gold, bitches.
AIG?? who the hell cares whats on their sheets now
And Bernanke refied. What do the powers at be know?
http://thegreatloanblog.blogspot.com/2009/12/fed-chairman-refied-into-30y-fixed-in.html
Most likely the CB is buying, but the better question is...what are they preparing to buy with all that cash?
the same stuff back after rates explode and the MBS constant bid is gone mar 1
Bingo. Congratulations. You win a prize !!
Exactly, there is a price at which the agency MBS market will clear. It is just 4-6 points lower than the market today.
Does PIMCO buy distessed debt? If so '10, '11 and '12 will probably be a fun time with all that PE-debt coming up.
Panama bond flops:
http://www.reuters.com/article/idUSN1719448720091218?type=marketsNews
When the State is selling, like when Gordy was selling UK gold--you should buy. And when the State is buying, you should sell. And Bill Gross is no dummy. SOLD! to Ben Bernanke.
He must be buying again.
A 15-minute bar chart of the 15-minute bar chart.
I manage my own money and I have a sizeable position I let Bill handle for me. Bill will make sure I at least have a solid foundation to my investments. Warren Buffett?.....nahhh, Bill's the man. Capital Preservation works for me just fine in this environment, but I am actually still making money through PIMCO (14.62% this year in a bond fund!). Thank god they are offered in my 401k!!!
isn't that special? that company is so criminal it isn't even funny anymore.....
Gross + Citi means something very bad has just happened. What?
where is the pimco fund data released?
I think PIMCO has a real clear grasp of when MBS purchases are going to end and has timed their last sale to correspond to the FEDs final purchase 2/10-3/10.
Clearly a bet on the fact that there is only an illusion of leverage/liquidity in the system-induced by the 1.5+trillion of Fed liquidity as a substitute for lack of available leverage post LEH. As the drugs are removed from the system, the patient will suffer from higher rates and wider spreads. The Pimco guys ado their homework and are very good.
MBS - Major Bull Shit. Yet another disguised bailout for the terminally rich.
I only see holdings out to Sept 30, 09. Where'd you find an updated holdings analysis?
Year-end selling. Ultimately PIMCO is a fund whose buyers/clients are more conservative than the average large investors, or require a more conservative approach than they would from a a more aggressive fund. When PIMCO reports to its investors what it held at year end, they will show that substantial portions of their holdings were in safe, liquid, cash instruments. When 2010 rolls up, they will get back into the carry trade. Then in March and June and Sept., we'll hear more about them moving into cash. Ofcourse it will all be window-dressing. The trick is that when they report to investors what they are holding, and what their returns are. They will have "shown" that they beat similarly invested competitors. Hence, Bill, Mo and Douggie,can justify their personal reward because of all the "alpha" they generate.
I've got it on good inside info that the dollar, is depressed...and will only get worse..
http://media.townhall.com/Townhall/Car/b/sbr102309dAPR20091021091327.jpg
Add Benjamin Franklin’s wink to the U.S. dollar’s list of humiliations.
The 18th-century American statesman is perhaps best-known in Asia for gracing the front of the $100 bill. Asians used to worry about counterfeit “Benjamins.” Now, they’re frightened of the real thing. Since January 2008, 25 percent of the dollar’s value has melted away versus the yen. Time for a redenomination? Japanese toymaker Bandai certainly thinks so.
http://www.bloomberg.com/apps/news?pid=20601039&sid=a_1UjBOzaP_g
He selling now & will start buying @ higher yields later in the yr.