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Mohamed El-Erian Leaving PIMCO
Moments after the novelty news that Neil "Chump" Kashkhari will run for California governor (as a Democrat), the real PIMCO news hit: Mohamed 'New Normal' El-Erian is no longer a the ecompany.
From the press release:
Pacific Investment Management Company LLC (PIMCO), US-based Asset Management subsidiary of Allianz, has reorganized its leadership structure. Mohamed El-Erian, Chief Executive Officer and Co-Chief Investment Officer of PIMCO, today has resigned from his functions effective mid-March and will leave PIMCO at the same time. He will stay on the International Executive Committee of Allianz and will advise the Board of Management of Allianz SE on global economic and policy issues.
Mohamed El-Erian will directly report to Michael Diekmann, CEO of Allianz SE.
William H. Gross, founder of PIMCO, will remain Chief Investment Officer.
Portfolio management will be strengthened by the appointment of the Managing Directors Andrew Balls and Daniel Ivascyn as Deputy Chief Investment Officers.
In today's meeting, effective as of the above-mentioned date, PIMCO's Managing Directors also elected Douglas Hodge, Managing Director and currently Chief Operating Officer of PIMCO, as Chief Executive Officer and Jay Jacobs, Managing Director and currently Global Head of Talent Management, as President. Craig Dawson, Managing Director and currently Head of PIMCO Germany, Austria, Switzerland and Italy, will assume the position as Head of Strategic Business Management.
Is this an indication that the bond pessimism has topped out, or does it simply mean that it is now time to move on from the New Normal to the New New Normal
And a little uncomfortable message from Bill Gross to go along with this news...
Gross: PIMCO’s fully engaged. Batteries 110% charged. I’m ready to go for another 40 years!
— PIMCO (@PIMCO) January 21, 2014
Finally, here is the press release just released by PIMCO:
PIMCO, a leading global investment management firm, announced today that Chief Executive Officer and Co-Chief Investment Officer Mohamed A. El-Erian has decided to step down from his role and leave the firm in mid-March. He will remain a member of the Allianz International Executive Committee and, as of mid-March, also advise the Board of Management of Allianz on global economic and policy issues. PIMCO’s founder William H. Gross will continue to serve as the firm’s Chief Investment Officer. At the same time, the firm has appointed a new portfolio management and executive leadership team. They will immediately begin to transition into their new roles.
- Andrew Balls, Deputy Chief Investment Officer: Mr. Balls is a Managing Director in the London office, a member of the Investment Committee and Head of European Portfolio Management. He joined PIMCO in 2006.
- Daniel Ivascyn, Deputy Chief Investment Officer: Mr. Ivascyn is a Managing Director in the Newport Beach office, Head of Mortgage Credit Portfolio Management, and a lead portfolio manager for PIMCO’s alternatives investment strategies. Morningstar named him 2013 Fixed-Income Fund Manager of the Year (US). He joined PIMCO in 1998.
- Douglas Hodge, Chief Executive Officer: Mr. Hodge is a Managing Director in the Newport Beach office and is currently PIMCO’s Chief Operating Officer. Previously he led the firm’s Asia Pacific region from the Tokyo office. He joined PIMCO in 1989
- Jay Jacobs, President: Mr. Jacobs is a Managing Director in the Newport Beach office and is currently the Head of Talent Management globally. Previously, he was the Head of PIMCO’s German business, based in Munich. He joined PIMCO in 1998.
- Craig Dawson, Head of Strategic Business Management: Mr. Dawson is a Managing Director and is currently Head of PIMCO Germany, Austria, Switzerland and Italy, based in the Munich office. He is also Head of Product Management for Europe. In his new role, he will relocate to the Newport Beach office. He joined PIMCO in 1999.
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One rat can read the writing on the bulkhead.
Say it ain't so, Moe...
yeah, PIMCO owns a lot of bawnds. A LOOOOOOOOOOTTTTTTTTT of them. They will surely eat shit.
Bonds are the place to be for the next ten years, pretty soon you will be able to double and triple your money lending it to .gov for a few years.
Good luck with that fonehack!
Hey, I didn't say how much stuff that money will buy did I?
Gees, all that insight, gone.
He is going to do porn.
Mohammed El Make'nitRain?
I will mith the lithp;)
Bill Gross is a moron. A battery charged over 100% is actually bad for a battery.
Gross: PIMCO’s fully engaged. Batteries 110% charged. I’m ready to go for another 40 years!
translation - I am scared shitless. What the hell was I thinking tweeting about Icahn and the "end of growth"? Who the hell wants to hear that from the world's largest bond fund manager? El Erian was the only guy giving this shithole an air of respectability, now he's gone..40 years Lol. If Bill's kids use one of those plant-an-urn things, he will be a mighty oak in 40 years.
Is he shaving that 'stache? THAT would be newsworthy.
Rat.
Ship.
Sinking.
SHTF.
Guess those CNBS appearances really DON'T boost one's profitability.....
That is "Assault on Battery".
The guy always reminded me of Gomez Adams for some reason.
"He is going to do porn."
Mo Hammer El Anal, in: PIMPCO II -- Come To PIMPCO.
Rumors have it that he's dumping groos Bill for Jason Beeber.
Only a rumor...
I liked El-Erian because of his moustache. Sometimes I listen to people because of their beards, other times it's their moustache. Satoshi had a fu manchu that really took me away.
I heard life of a FIAT currency is 40 years.
You must love Duck Dynasty then.
my most pleasant conversations have been with beards
Getting linguistic with Bearded clams?
Lip reading, not with your eyes... but with your tongue
This Absalom did wipe his mouth all dry;
Dark was the night as pitch, aye dark as coal,
And through the window she put out her hole.
625 And Absalom no better felt nor worse,
But with his mouth he kissed her naked arse
Right greedily, before he knew of this.
Aback he leapt- it seemed somehow amiss,
For well he knew a woman has no beard;
--geoffrey chaucer
You guys got it all wrong. El-Erian's moustache fell hair to a fortune. No need to work anymore...
I HEARD phoneHOMEstar hired him to pimp his co.
fonestar is more than capable of pimping his own product. He's like a one man virtual militia.
And I am sure you are the best masturbator in a mirror that ever held/moisturized/stroked/choked a BitCoin
While there was initially a lot of skepticism about Bitcoin (and especially the origins of Bitcoin) amongst Zerohedge posters, fonestar through much work, consultation and private counselling was able to reach a consensus amongst the most die-hard, ardent skeptics and detractors. What we ultimately wound up resolving, was that Bitcoin is an excellent and powerful game-changer. Also, that you should all be heavily invested in Bitcoin to gain exposure to it's wild upswings.
lovin' the repartee
Really? I am sick of the stupid bitcoin argument...like or don't, but shut the fuck about it already...
Seriously, why is it relevant to this thread?
I stopped saying positive things about Bitcon on this board @ $200. Maybe when it hits 10K Tyler will lead his flock to Bitcoin?
"Also, that you should all be heavily >>>invested<<< in Bitcoin to gain exposure to it's wild upswings."
So hedge with Tums or what?
What are you pimping.... Bitcoins?.. Pretty pethetic.
What are you pimping....
What you got?
I'm pimping reality...hoe. Not .0000000000000001 worth of nothingcoins.
By nothing, you mean "dollars" right?
Seriously stop it. We all get it. We understand your feelings on the subject. Now please go jerk off on someone who gives a shit.
Just out of curiosity, what's the mark to market on reality these days?
lol...I gotta say, thats pretty good, no damned good...plus another one for the irony, I love it.
But its still a reality based world ;-)
bonestar has smoked some bone in his time......
Short end of curve will remain very low. Soon interest rates will be negative once fed monetizes the entire market. Hold at own risk as currency crises will no doubt ensue
ABANDON SHIP!! ABANDON SHIP!!
More like bugging out and getting his preps ready. He must have heard something at a recent insider event that freaked him out.
What about the Chinese $4T in the Bahamas ? Might that start unwinding into the Bond market (uncontrollably) ? Couldn't that be a new weapon in-play ?
Watch where these guys bug out to...it will be telling if it's some Dacha in New Zealand or Canada.
The plot thickens.
ALL HANDS...
ABANDON SHIP!! ABANDON SHIP!!
More like Steve Miller's "take the money and RUN!"
TAKE THE MONEY AND RUN LYRICS - GERRY RAFFERTY
I was caught up in a fever
In that summer of ‘69
And my heart was cryin' out for change
And I knew time was comin' when I'd get away.
So I moved down to that city
Where I met a friend of mine
And I must admit he tried to warn me well
With all those bad luck stories he could tell.
He said "Take the money and run,
Take the money and run
Believe it, in this town you can't trust anyone
You're gonna learn that lesson my son".
"Take the money and run,
Buy yourself a place in the sun
Don't be a fool, don't you trust anyone
You gotta take the money and run, take the money and run".
The one month went negative! The fed will panic jawbone/taper as the collateral is shrinking dramatically (hey just like commie priced fixed systems). Doomsday scenario for bond holders is China just dumping the lot and the Fed/Treasury then has to void the holdings and buy the gap, of course a major war would prompt that. Since we are repeating history...
This market is f*cked in 2014
In case your not up on current events China just reached record Tbill holdings. Google is your friend.
Well if you look at it with clarity, China is chasing yields with it's huge amount of $ holdings, note in my post the very short end collapsed into negative territory (as current as you could possible get). Also China/Japan don't want a USD collapse at this point, since they both hold tons of $ and bills. But if Obama tries to pulls something out of his a-hole over the China, Japan dispute when China is imploding economically while Abe prints = war. 100% they will liquidate, as I said in my post, if war breaks out, the Treasury can void China and even Japan holdings. Since the Fed is the major holder of Treasury debt, the bond issue in 2014 will be declining collateral. Now if collateral values collapse, the Fed will just print and buy everything, which in turn will cause the USD to collapse. Either we get a rapid spike in hyperinflation, or the system just breaks. What ever the case, our future is set.
The global free trade/market dream will die in 2014
also China is the biggest holder of Japan debt second to Japan.
Tasty.
I HEARD phoneHOMEstar hired him to pimp his co.
fonestar is more than capable of pimping his own product. He's like a one man virtual militia.
quite good at self-flattery too, I notice.
fonestar...Is that an after-inflation calculation?
If I knew just half of what he knows I'd...I'd...I'd still lose money in this market.
One Gross tweet too many perhaps.
They really have seemed to be getting more bizarre. Wunder if there is a reason for that and if this is why he is leaving.
El Erian joins the New Normal -- unemployed.
I'm figuring that El-Erian was able to envision being "unemployed" much more preferably than to what may occur inside PIMCO in the foreseeable future. If things were to turn "sticky" at PIMCO then that "albatross" would most certainly be hung around his neck, (though probably shared with Billy G.).
Whatever the reason, I think it is easy to deduce that there was a whole lot of disagreement between Mo' and the rest of the deck hands as far as to where the ship should be sailing. Hence, Man overboard. The fact that those at the Allianz HQ were not ready to part completely with El-Erian is evident by them making a spot for him on the board up there, so that they could re-install him if/when things turn to bird poop at PIMCO. All around it's probably a smart play.
I can also envision where El-Erian was asking very scary questions about where all of this is headed, in a macro sort of way. The Gross man is obviously spinning the ship's wheel while shouting "FULL STEAM AHEAD!", firmly believing that QE infinity has and will continue to save the day, from now until forever. Maybe it was the fact that figuratively speaking, Bill is looking a little glassy-eyed, staring off into the distance and he's got a some spittle trailing from his mouth when he overemphatically hollers about "110%!", (that in spite of the de rigeur proclamations about eternal confidence, love and faith in each other and how swell it was to have El-Erian around).
So yeah, maybe being "unemployed' ain't so bad. I'm sure he's been able to save a few lumps of coal to keep the fire for the winter ahead. It sure beats the crap out of having to leave the house and drive in this weather.
His next move is well planned... he is smart. and rich. He got an offer he likes better, or he is going to start his own thing. We will find out when the time is right. For him. The guy was dealt a great hand and has played it beautifully.
Humphrey Bogart in "The Caine Mutiny"
Andrew Balls. Where have I heard that name before...
Seriously, anyone with intelligence or nuanced thinking ate a crap sandwich last year - while the fucking lemmings loaded the boat and "made it all look so easy." We're truly fuckity fuck fucked if Mo-El, Paul Tudor, K-Bass, Ray-Day, R-Nott, et al can't make money - but a developmentally challenged lemur could probably crap on the WSJ and "identify" a winning portfolio. Maybe if I take a couple weeks off in Denver this will all start to make sense....
Abandon Ship!
So the illicit Chinese $4T in the Bahamas went into Bonds, Gold, and many other things and commodities, art, Diamonds, Jewels.
Might there be a disturbance when the $4T gets liquidated in-part ?
Maybe its time to "take the money and run".
El-Erian to Bloomberg TV: Jobs Data Between Puzzling and Worrisome http://hedge.ly/1dk9zCP
is it time to panic yet?
Not yet, the MSM will tell you when. /SARC
Nope, but keep yout towel handy.
http://en.wikipedia.org/wiki/Technology_in_The_Hitchhiker%27s_Guide_to_t...
Not yet, sweetheart. I'll tell you when. Now go fix us a cocktail.
Going to Bitcoin?
So the folks at pimp co got tired of the drooling lisping Frankenstein? Go get your fuckin shine box
I thought he looked not unlike bababooey of howard stern show fame - which certainly is better than bowl cut bill gross.
Bill, the dumb and dumber guys called. They want their salad bowl back.
Don't be too hard on Billy boy. He has the haircut for the yoga poses.
But, but where did he get that bitch ass voice ?
He got slapped on the back while getting a blowjob in univerity and the voice stuck.
I know a guy who listed El-Erian as the guy he would most like to meet. Called teh guy a "genius." WTF?
Suspect he's been promised a cushy government appointment. Wait and see where he lands.
Replace Wolfowitz at World Bank? Lew at Treasury? try his hand at ETFs at Blackrock? Join his pal Paul McCulley philosophizing on beaches and at fishing holes while trying to atone for the decades of helping deliverwealth concentration for the elitest?
Does it really matter . . .
He's just moving up the food chain...closer to the ********** and of course the BIS.
Carry on nothing to worry about.
It's time to find a chair before the music stops.
Don't want to put a harsh on your mellow dude, but the chairs have already been broken up and used for firewood.
We are at that bare concrete moment Zappa refered to.
I'm going to miss seeing his mustache in those CNBC interviews (not).
Mohamed El-Erian deserting his troops? I can't imagine why?Why would anyone with such esteemed corporate stature depart his throne?
"Why would anyone with such esteemed corporate stature depart his throne?"
After they're done shitting and they're ready to flush?
Somebody had to be jettisoned for the pimpco miserable year ... patsy
Another greasy rat jumping ship.
I guess the lucrative world of 1.01% short-term bond yields lost its lustre.
Luckily he'll be able to fall back on unemployment insurance until he finds another gig.
Mo knows he couldn't beat Yellen.
no shit!
The next U.S. installed puppet leader(dictator) of Egypt?
going back to Harvaaaard?
All the while I thought Gross at PIMCO was biggest money manager in the world, little did I realize he was affiliate of ALLIANZ !
The Germans run PIMCO !
Mutti is bigger than Obammy.
FINALLY! All the way down here before "Allianz" appears in print. "What do I pay you people for?"!!! (oh, that's right. none of us are paid to do this.)
they bought pmco years ago...Gross made 600mm+ on the deal.
It's about time Tennessee Ernie Ford was put out.
He helped bankrupt Harvard, ( a real shame, we came so close to losing Harvard, I bet if we could audit the Fed we would see Harvard junk on their balance sheet) with the help of Larry Summers.
Talk about overpaid no talent.
http://www.zerohedge.com/news/2013-02-15/el-erian-stocks-prices-are-arti...
Maybe he'll be right after he's gone
maybe he gone because he's right
He's probably Massively Short. Fuck Hedging.
January 31st has many permutations and the numbers are so simple....1,3,1,2,0,1,4.
I think I can pull 3 sixes out of that deck.
What's China going to do when it needs to liquify their banking sector when January 31st arrives...what could they sell to get some cash...Fast Money ....or Treasuries ?
Might be a massive and uncontrolled Chinese bond sale in 10 days.
.
At Pimpco, pimping ain't easy.
Pimping may not be easy but whoring around certainly seems to be.
She's Yellin'
Hate to see him go - he is one of the few 'market doubters' that CNBC does not cut off after 30 seconds.... But perhaps he just recognizes that bonds are never going to pay more than 2 or 3% for the near term, and will lose people money when (if?) rates rise. Neither is good for PIMCO.
if the best was for higher yields (see below) to cause the sell off in equities then that's been the wrong "bet." I will say this...pretty much everyone has gotten crushed by those spreads widening...so that's not bad company to be in. "Now we get a compression trade" and equities still finish green? "that only happened in the Great Depression." How long can an equity move higher while the company racks up nothing but losses? Apparently a long time...talk about "limited Government" though.
I think this means he's expecting rising yields (falling bonds).
I guess that would make sense. Baby boomers gotta sell some bonds if they want to enjoy retirement.
"Enjoy" is probably not the best choice of words. 'Suggest "suffer" is a word better suited.
Probably bailing out all his over inflated stocks and putting them in PIRMX
FUCK PIMPCO!
Rats leaving sinking ship? When I saw Greenspan step down I had a bad feeling because he had an ego that would stick around for success.
Rats leaving sinking ship? When I saw Greenspan step down I had a bad feeling because he had an ego that would stick around for success.
Rats leaving sinking ship? When I saw Greenspan step down I had a bad feeling because he had an ego that would stick around for success.
I make it my goal to Thumb Down every Fonestar comment.. Bitcoins for all the douches....
So's he's going to be a pumping pimp on CNBC full time?
Gross will hire Ben Bernanke to replace him?
I thought in the new normal you either had to sign a statement that made no admission of guilt or you had to commit suicide.
To me just another talking head......i read his career history on Bloomstein and when I saw the IMF for 12 years if I reember correctly, I then had a moment of clarity and realized why I never paid much mind to El Heirien. Contexta caniculae!
No comment.
Yes you did! ;-)
badda-boom!
- Ned
{and how ya doin' lad?}
nmewn/ I've the deepest respect.
We'll have that Z/H party. Best wishes to Mrs. nmewn.
I've some traveling, and babies to make. smiles
No telling how much that mfker made executing QE trades for the fed and no telling how many fortunes after.
I'm sure it's all legit. Hell, if it wasn't, I am sure the regulators would do something / SARC
He is going to work his magic as President of Egypt. ha ha ha
I will miss seeing that little photo of Bill and Moe that always appears on ZH. When I look at the space between the two guys I see the rear of a female figure in a bikini bottom. Once you see it, that's all you see.
So he jumping out of the ship... huh?
I am more interested in Mini Hank running for Gov of Kalifornia. Gonna make sure those muni bets pay off.
The swan behind him is the wrong color.
before i quote The Bard, i must say that mr. gross is one of my heroes...in a world of capital and markets, i reckon myself among the bond-guys (i seem to understand bonds better than any other asset class...for whatever reason); but, well, 'capital' & 'markets' are a thing of the past -- and how the FUCK do you play either side against a flattened curve? this ain't gross's fault; and he was (and still is) brilliant. and, moreover, if you read between gross's lines (or should i say, his fingers) you'll know he's been telegraphing what's bout to happen for quite a while (and much to his credit as a man of integrity).
all that being said, i'll now quote The Bard:
beware the ides of march (or somewhere therebouts).
here's a dedication to Mr. Gross; and, if i know him the way i think i do, i figure he'll 'get' it. my guess is he got it a lil over five years ago.
bill, whatever may happen, you'll always have many advoates & admirers amongst the very wisest...kudos, amigo!
https://www.youtube.com/watch?v=KcMdUKWidPY
the new style,
janus
I agree, though I don't know if he still is brilliant. The markets are broken, surely, but he has all but admitted in several of his missives that he is losing his edge, if not his mind.
his mind is just fine.
his edge? no disrespect, but, please, this is his career...he hadn't any idea america would ferment into such feculent rot when first he began some thirty-plus years ago. we had a country back then. it was something...i tells ya what. he manages the world's largest bond-fund...do you expect he mount the tops of ararat and tell all what he knows is commin in explicit detail? that's too much to require of any man. we all have bills to pay; and Bill's been sayin what's true in his own particular way...and for quite a while.
america is lost...the drain has spiraled, swirled, swallowed back into itself, and that last exhaustive gullop of the toilet has belched its final burp.
olympus has indeed fallen. we have been captured.
this is the reason men like janus are emerging from the shadows...we love this country; and are willing to fight.
i can & will pursue the specific crimes of treason and murder to their inevitable settlement...i won't look the other way any longer (and i am well-within the bounds of my rights).
to all you think-tankers and other such adapted bolsheviks, call janus all you fuckin want...but a non-state actor? may God damn you! i bristle at this accusation above all others. i act for a nation-state. i am a patriot. i love my country. i love my people. i serve my God. i am an AMERICAN. who/what the fuck are you?
any of you bitchez can check my stats. YOU are the non-state actors; you are the treasonous betrayers; you are the godless murderers. YOU are approaching a day of reckoning.
and YOU are fucking with a people who have a distinct taste for violence...but only in its proper measure -- we are, after all, civilized.
did YOU think we would respond like a bunch of peasants and slavs? YOU have another thing comming...mercy and patience are at an end.
so, i suppose, yes, bill gross has lost his mind; tyler durden has lost his mind; janus has lost his mind; paul craig roberts has lost his mind...i could keep on listing the wisdom what's lost its mind. but the paradigm is sane; that's for fuckin sure.
https://www.youtube.com/watch?v=ufERJEdcfAY
janus came to a money-site for an explicit purpose: to find and influence elegant and important minds -- many of them favor money. i don't mind it; and it comes in handy every now and again...money, that is.
nevertheless, i trade in the most ancient & vital of all currencies...fuck your fiat, fuck your bitcoin, fuck your gold; BLOOD, that's where the money's at!
janus is thirsty.
https://www.youtube.com/watch?v=P0WjRmqHz48
...to mariana,
janus
..Now, if you don't mind, let me exit stage left before the guillotine arrives.
biggie smalls said it best,
mo' hamed mo' problems.
yawn.
Farewell you silly wabbit. Don't forget your tutu with you. We'll always think of you as "that' new normal kinda guy..
PFFT. I wonder who he hacked off?
Hope he has cancer. Fuck you globalist prick
same to you, you narrow minded ass wipe... Who fucking raised you?
I am retiring in order to spend more time with my possessions.
Which Alphabet Agency is his next gig at?
Surely his non-compete agreement will allow revolving door moves.
That would really suck to have the last name of 'Balls'.
"Sir, you have a call from Mr. Balls."
"Please hold Balls."
LOL
In the 1980s we had an Alan Bond (an Australian painter by trade) who used fraud to buy Bell Resources from Holmes a Court. He landed up in jail.
In the 2013 we have the ongoing fraud of bonds as just part of a huge story of self empowerment and ponzi by big banks on Wall Street.
Wall Street will soon follow in Alan Bond's footsteps as FIAT reflects its real value - $0
But who will be jailed this time?
"Andrew Balls, Deputy Chief Investment Officer: Mr. Balls . . ."
I couldn't get over the words "Mr. Balls." He must have had a real tough childhood.
Imagine people saying this to him. "Mr Balls" must have some real balls. Balls to the wall. My balls itch (followed by scratching his head). I hope he has a good therapist.