Total Return Fund

BIS Finds Global Debt May Be Underreported By $14 Trillion

"Contracts worth tens of trillions of dollars stand open and trillions change hands daily. And yet one cannot find these amounts on balance sheets. This debt is, in effect, missing" the BIS finds in its latest quarterly assessment, which is a concerning as "the missing debt amounts to some $13-14 trillion."

US Futures Flat; Bonds Rise, Dollar And Oil Slide Over US Productivity Collapse Fears

Following yesterday's muted action which saw the S&P500 close unchanged, it has been more of the same listless trading overnight, with US equity index futures little changed as the Nikkei fell on the back of a stronger Yen, while government bonds rose and European stocks reversed early gains following the BOE failed bond monetization operation. Crude oil dropped for a second day after Saudi Arabia told OPEC that it pumped a record 10.67 million barrels of oil a day,

Gundlach Was Right About The Short Squeeze; Warns Of "Massive Anxiety" About The Market

Gundlach said the S&P 500 Index has been struggling to reach and stay above 2,100, mirroring the slowish growth in the United States. "It's like people think that the Fed has this super-secret information about how strong the economy is about to become or that the economy is about to become smoking hot." Gundlach added: "The S&P 500 has exhibited declining highs for over a year, with two big drawdowns. This is 'dead money' with massive anxiety."

Why Bill Gross' Departure Did Not Roil The Bond Market: Pimco Sold To Itself

Back in October, following the shocking news that after building Pimco from the ground up, Bill Gross would depart the world's then biggest bond fund following internal infighting, there were concerns that as a result of a surge in redemptions and liquidation sales at the Gross-controlled Total Return Fund, the already illiquid bond market would suffer and potentially go bidless across various CUSIPs in order to extract the best price from the forced seller. This did not happen despite an unprecedented surge in redemptions which has seen PIMCO's AUM tumble by 60% from its peak holdings of $293 billion in April 2013. Why not?

Crowning A New Bond King: Vanguard Fund Overtakes PIMCO For Bond Throne

No one stays on top forever, and to be sure, when Bill Gross' long reign at the top of the fixed income universe finally came to a sudden and rather unceremonious end last October, the race to lay claim to the inevitable outflows from PIMCO's Total Return Fund was on. Now, a winner has emerged — and it's not Jeff Gundlach.

Frontrunning: May 5

  • Fed's Yellen says met firm at heart of leak probes (Reuters)
  • EU Raises Growth Outlook as ECB Counters Greek Threat (BBG)
  • Hillary Clinton Takes Hit in WSJ Poll, but Holds Edge Over GOP Rivals (WSJ)
  • China stocks slump on tighter margin rules, IPOs; Hong Kong down (Reuters)
  • McDonald’s Chief Promises Turnaround in a Restructuring (NYT)
  • German Bond Market Selloff Continues (WSJ)
  • Vanguard overtakes Pimco’s Total Return following outflows in wake of Bill Gross’s departure (WSJ)
  • EU Demands Concessions as Greece Hurtles Toward Deadlines (BBG)
  • Junk Bonds Are The New Haven Assets (BBG)

Futures, Treasurys Flat After Chinese Stock Bubble "Incident"; Bunds Stage Feeble Rebound

If yesterday's laughable lack of volume (helped by the closure of Japan and the UK) coupled with hopes that the end of the buyback blackout period was enough to send stocks surging if only to end with a whimper below all time highs despite what is now looking like three consecutive quarters of Y/Y EPS declines according to Factset, today's ramp will be more difficult for the NY Fed and Citadel to engineer, not least of all due to the headwind of the overnight "incident" by China's stock bubble which saw the Shanghai Composite tumble by 4%, the most since January.