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PIMCO To Buy Billions In European Toxic Debt

Tyler Durden's picture




 

Earlier today we were surprised when none other than uber central-planning skeptic, not to mention bond fund manager, Bill Gross threw in the towel and in his latest letter advocated the purchase of risk assets - and Bill Gross is the last person needing reminding that in a day and age when the 10 Year yields just barely over 2.5%, this means not bonds but stocks. The surprise, however, promptly disappeared when we realized that PIMCO is merely the  latest entrant in the scramble for yield game following, with a substantial delay to all of its other "alternative" asset management peers, right into ground zero: European toxic debt.

WSJ reports that Pimco quietly has raised $5.5 billion to buy bank assets in the U.S. and Europe and has closed the fund to new investors, according to a person familiar with the fundraising. The Bank Recapitalization and Value Opportunities II fund, or Bravo II, is being led by deputy chief investment officer Dan Ivascyn and will target a range of unwanted assets on the balance sheets of banks, including residential and commercial real-estate assets.

In other words: toxic, non-performing debt, which is something Europe's bank certainly have a lot of. How much? Recall that it was the IMF itself which said in October of 2012 that European banks needs to sell $4.5 trillion in assets until 2014Naturally, they are way behind schedule, which means vulture investors will have a buyer's market in setting the price as banks have crossed the desperation point in finding buyers.

But it's toxic debt? How are non-performing loans, on which the obligor has most likely defaulted several times over, a good investment under any price? Well, the hope here, of course, is that as those tens of millions of unemployed workers find their way back into the work force, that the debt will be "worked out" and that recoveries on the said debt will make the purchase at deep distressed levels profitable.

WSJ adds:

Investors are lining up to snap up the unwanted loan portfolios and real-estate assets. Many of the targets lie in Europe, where banks have been busy shrinking their balance sheets primarily to meet stricter capital requirements.

The good news is that PIMCO will not have difficult finding willing sellers of such debt:

Last month, The Wall Street Journal reported that two of Italy's biggest banks, Intesa Sanpaolo and UniCredit were in talks with U.S. private-equity firm KKR regarding the sale of some of their restructured loans.

 

Commerzbank said in February that it had sold €710 million of Spanish commercial real-estate loans to investors. In the U.K. late last year, the Royal Bank of Scotland sold its first portfolio of U.K. commercial property assets to hedge fund Varde Partners, and in August, Spain's 'bad bank'—set up to house assets from the country's bailed out banks—sold its first real-estate assets to private equity group HIG.

Why is PIMCO doing this? Simple - following consecutive months of outflows, even the biggest bond manager in the world has finally "yielded" to the chase for yield, or as we described it last May - FOMO, aka Fear of Missing Out.

Pimco's new Chief Executive Douglas Hodge told Financial News last month that he wants to broaden the firm's equity expertise, including backing the hiring of teams by equity chief Virginie Maisonneuve. The firm offers products in derivatives, multi-asset, real estate, private equity, real return and emerging markets, but is still 90% exposed to fixed income

So as PIMCO too joins the great flood of one time skeptics who dare not look at themselves in the mirror and are willing to blindly follow the herd, one wonders: just how much more incremental dollars are out there left to chase assets that others are already selling. Because readers certainly remember that while algos, retail and momo speculators, not to mention TV pundit that invest with monopoly money, are rushing into the parabolic blow off top phase of the market, the smart money can't wait to get out, and its advice as of last August was simple: "sell now."

They can now also count PIMCO among the FOMO buyers.

 

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Tue, 03/04/2014 - 17:47 | 4509137 LawsofPhysics
LawsofPhysics's picture

So, it would appear that the path to success really is becoming too big to fail. Good luck with that.  One simple question, who will be insuring all of these "investments".  Where have I seen this before...

Tue, 03/04/2014 - 17:50 | 4509167 TruthInSunshine
TruthInSunshine's picture

I will be honest - lest I risk hypocrisy: Buying PIIGS bonds may be a rational play given alternate asset class returns, lest one truly believes that Germany & the relatively few solvent EU members will let the EU fall apart (and I once tended towards that line of thought, but lately...not so much).

Tue, 03/04/2014 - 17:51 | 4509176 wintermute
wintermute's picture

PIMCO the new AIG?

No wonder El-Erian has jumped ship.

Tue, 03/04/2014 - 17:52 | 4509186 fonestar
fonestar's picture

"Gross Toxic Assets"

fonestar will buy that for a satoshi!

Tue, 03/04/2014 - 17:54 | 4509199 HyBrasilian
HyBrasilian's picture

Satoshi = 'TOXIC SUSHI" [like Bill Gross will be eating in Newport Beach for the next 'rest of his life']...

Tue, 03/04/2014 - 18:02 | 4509238 fonestar
fonestar's picture

Satoshi and fonestar will be eating Beluga.

Tue, 03/04/2014 - 18:15 | 4509299 HyBrasilian
HyBrasilian's picture

You'd better TRY & buy it now then Poindexter... It's your last chance...

Tue, 03/04/2014 - 18:19 | 4509310 mvsjcl
mvsjcl's picture

He (Gross) received his marching orders from the money masters, and will comply.

Tue, 03/04/2014 - 18:20 | 4509326 0b1knob
0b1knob's picture

Wasn't it toxic Euro debt that sank MF Global?

Tue, 03/04/2014 - 18:29 | 4509366 emersonreturn
emersonreturn's picture

bill gross looks like he has cancer.  

Tue, 03/04/2014 - 18:40 | 4509419 max2205
max2205's picture

Bill is running the Dallas Buyers Club

Tue, 03/04/2014 - 18:53 | 4509454 y3maxx
y3maxx's picture

...What does the NSA have on Bill Gross that would make him switch to the Darkside?

Tue, 03/04/2014 - 19:33 | 4509522 Supernova Born
Supernova Born's picture

Bulging cans of opportunity must be consumed.

Wed, 03/05/2014 - 02:09 | 4510725 Four chan
Four chan's picture

el erian is gonna look like a genius, because this is why he split.

Tue, 03/04/2014 - 18:55 | 4509456 fockewulf190
fockewulf190's picture

He´d be better off buying about $2 billion worth of physical silver.  He would be talked  about for hundeds of years.

Tue, 03/04/2014 - 19:31 | 4509580 pitz
pitz's picture

How many people even remember the Hunt Brothers today? 

Tue, 03/04/2014 - 18:55 | 4509461 jbvtme
jbvtme's picture

apparently, billy passed on the nail guns...

Tue, 03/04/2014 - 19:05 | 4509503 Cacete de Ouro
Cacete de Ouro's picture

Uncanny resemblance to Little Bill in Boogie Nights

aka William H Macy

http://3.bp.blogspot.com/-IAieD52h-DU/UVzXB73U1iI/AAAAAAAAHAY/1dIXI49k-I...

Tue, 03/04/2014 - 19:04 | 4509498 Not Too Important
Not Too Important's picture

"He (Gross) received his marching orders from the money masters, and will comply."

He works for Deutsche Bank. He hasn't been independent for years. Of course he'll do what he's told.

He's not in a position to 'moral up' and return investor monies. He'll simply become a prop division of DB and retire in comfort.

Next.

Tue, 03/04/2014 - 18:18 | 4509319 SafelyGraze
SafelyGraze's picture

if equities are overpriced and bonds have no yield, there is simply nowhere to turn

oh shit

not fonestar again

 

Tue, 03/04/2014 - 19:09 | 4509518 nmewn
nmewn's picture

Digital money to play around with digital debt, whats not to love? ;-)

Fire up da puter Mr.Yellen, we're takin this out a whole new door!!!

Tue, 03/04/2014 - 18:17 | 4509314 Overfed
Overfed's picture

Whales?

Tue, 03/04/2014 - 18:21 | 4509329 fonzannoon
fonzannoon's picture

"Well, the hope here, of course, is that as those tens of millions of unemployed workers find their way back into the work force, that the debt will be "worked out"

 

I would have thought the hope here would be that the ECB takes it off their hands, kind of like the fed did with MBS, helping him make a killing....

Tue, 03/04/2014 - 21:04 | 4509944 Clever Name
Clever Name's picture

I agree, but I doubt he's relying on 'hope'. I assume he knows something, or just plans on using the 'investors' money as backstop for other purposes?

Given that hes "closed the fund to new investors", one assumes that these investors are big players, would that mean this ploy isnt trying to rope the little guy into it? I dont know what to believe anymore, but this guy is a 1%er, so he must be right. Right?

Tue, 03/04/2014 - 17:58 | 4509196 ZerOhead
ZerOhead's picture

$50 bucks says that Gross probably bought a couple of billion dollars worth of Pimco put options in an offshore account...

Tue, 03/04/2014 - 17:58 | 4509214 LawsofPhysics
LawsofPhysics's picture

Oh do tell, if true, then that's something I can trade.  Got a source or something?

Tue, 03/04/2014 - 18:42 | 4509423 max2205
max2205's picture

He knows GYELLEN will print a stealth bailout for the EU...Wait and watcb

Tue, 03/04/2014 - 19:06 | 4509505 Not Too Important
Not Too Important's picture

What do you mean 'will'? She already has. It's never stopped, since '07.

Well, it does go back further . . .

Tue, 03/04/2014 - 18:50 | 4509443 ZerOhead
ZerOhead's picture

Nah... just a silly hunch.

Otherwise it could only be explained by a very large brain tumor...

Tue, 03/04/2014 - 18:25 | 4509352 AC_Doctor
AC_Doctor's picture

Bill is losing it now that EL ERIAN isn't around to wipe his ass and give him a reach around!

Tue, 03/04/2014 - 18:13 | 4509293 elwind45
elwind45's picture

EL ERIAN went to Basel

Tue, 03/04/2014 - 18:03 | 4509244 rubiconsolutions
rubiconsolutions's picture

"I'll gladly pay you Tuesday for a hamburger today" - J. Wellington Wimpy

Tue, 03/04/2014 - 18:23 | 4509345 Ioannis
Ioannis's picture

When the world learns about Fukushimas effects on the US, Europe will seem a lot more desireable...

Tue, 03/04/2014 - 19:06 | 4509509 Not Too Important
Not Too Important's picture

They're no more than 2-3 years behind. Now, the Southern Hemisphere maybe . . .

Tue, 03/04/2014 - 18:01 | 4509229 ZH Snob
ZH Snob's picture

what else can he do, admit that all stocks and bonds are a fool's game at this point?  that they are all fixed and equally bound for the financial junkyard? 

Tue, 03/04/2014 - 23:19 | 4510355 TheReplacement
TheReplacement's picture

He could probably afford to quit playing the game and retire.  I've always wondered why rich old men work until they die.  What would be the point of living simply to accumulate more and more just to buy the farm and leave it all behind?  Very strange and sad really.

Wed, 03/05/2014 - 06:32 | 4510963 Wahooo
Wahooo's picture

Gross says he buys what the Fed is buying. This is not good.

Tue, 03/04/2014 - 18:01 | 4509233 negative rates
negative rates's picture

I know who won't be, the time police.

Tue, 03/04/2014 - 18:05 | 4509260 kita27
kita27's picture

He looks like Fredo from the Godfather part 2.

Tue, 03/04/2014 - 18:37 | 4509407 kurt
kurt's picture

he's smart

Tue, 03/04/2014 - 19:40 | 4509606 Supernova Born
Supernova Born's picture

Fredo goes fishing smart.

Wed, 03/05/2014 - 02:12 | 4510729 Four chan
Four chan's picture

lol now that was funny!

Tue, 03/04/2014 - 20:33 | 4509864 Berspankme
Berspankme's picture

Is it me or does this guy have an enormous head

Tue, 03/04/2014 - 17:44 | 4509139 ebworthen
ebworthen's picture

Does Bill Gross think that mustache makes him look younger?

Ack!  Makes him look like an Australian pedophile.

Tue, 03/04/2014 - 18:02 | 4509241 negative rates
negative rates's picture

I see his moustache, and raise him an asset.

Tue, 03/04/2014 - 18:05 | 4509252 TruthInSunshine
TruthInSunshine's picture

If The Village People were still together, Bill Gross would be singing YMCA.

Because gay mustache & female hormone treatments..

Tue, 03/04/2014 - 18:36 | 4509401 kurt
kurt's picture

philatest mate

Tue, 03/04/2014 - 17:43 | 4509140 NOTW777
NOTW777's picture

why not buy VIPS and YY and PCLN and CANN

Tue, 03/04/2014 - 17:44 | 4509142 yogibear
yogibear's picture

So who's backing Gross up? Gross is usually the middleman.

Tue, 03/04/2014 - 17:54 | 4509165 Rainman
Rainman's picture

I'm sure CalPers is in there somewhere. They got a nose for shitty deals. And they needs to hit a 7.5 yield forever.

Tue, 03/04/2014 - 18:06 | 4509263 KickIce
KickIce's picture

Janet, and there's got to be some serious strong-arming going on to make a company shift gears like this,

Tue, 03/04/2014 - 20:48 | 4509901 Spigot
Spigot's picture

Purely a national disintegration play: buy discounted bonds and sell them at face value to the FED.

Tue, 03/04/2014 - 17:45 | 4509150 economessed
economessed's picture

Shorter Bill Gross:  "Fuck it."

Tue, 03/04/2014 - 17:45 | 4509152 ZippyBananaPants
ZippyBananaPants's picture

I just dropped a toxic duce, if he wants to buy that too!

Tue, 03/04/2014 - 17:54 | 4509201 Cacete de Ouro
Cacete de Ouro's picture

Is it a floater? Gross can package it up as a 'Floating Rate Note"

Tue, 03/04/2014 - 18:05 | 4509258 ParkAveFlasher
ParkAveFlasher's picture

This is the best ZH day EVER

Tue, 03/04/2014 - 18:19 | 4509320 TruthInSunshine
TruthInSunshine's picture

"Shitty ASSets."

Carl Levin (D-MI) quoting Goldman Sachs emails during Kangaroo Kabuki Theater Proceedings.

Tue, 03/04/2014 - 18:16 | 4509305 KickIce
KickIce's picture

Unless you're from Japan you can at least use it to grow food.

Tue, 03/04/2014 - 17:46 | 4509156 ziggy59
ziggy59's picture

last one to the table doesnt get much food...

Tue, 03/04/2014 - 17:49 | 4509164 f16hoser
Tue, 03/04/2014 - 18:05 | 4509259 Cacete de Ouro
Cacete de Ouro's picture

Californian Bond portfolio managers' guide to slide presentations:

Never say Toxic Debt. Avoid 'junk bond' also. Instead say something like 'high yield'. To be extra safe just say 'extended quality'.

For bonus points, when you are dealing with simplistic independent advisors, don't say 'fixed income'. They won't understand. Just say 'bonds'.

Tue, 03/04/2014 - 18:07 | 4509266 LawsofPhysics
LawsofPhysics's picture

Okay, that's funny as hell.

Tue, 03/04/2014 - 17:50 | 4509168 supermaxedout
supermaxedout's picture

When Pimco is buying it, then its not toxic debt! Europe is in very good shape when compared to the US economy.

 

Tue, 03/04/2014 - 18:13 | 4509291 Ioannis
Ioannis's picture

Especially after the markets learn the truth about Fukushima's effect on the US...

Tue, 03/04/2014 - 17:50 | 4509171 Cacete de Ouro
Cacete de Ouro's picture

Overheard in PIMCO office one evening in 2015

Cleaner: "What the fuck is this on the desk?"

Gross: "O that, that's just some toxic debt"

Cleaner: "I'm tired of cleaning up your shit"

Tue, 03/04/2014 - 18:43 | 4509426 Eahudimac
Eahudimac's picture

Toxic debit (TD) = shit (s), and people (Assholes (A2)) want this shit, and we assume shit (s) has value (v), then v=s*A2, I'm going to take a shit in an envelope and send it the IRS (A2), or A2=v/s. Taxes paid! You can't argue with math.

Tue, 03/04/2014 - 19:09 | 4509517 Not Too Important
Not Too Important's picture

Very elegant. It must be true.

Tue, 03/04/2014 - 17:51 | 4509179 syntaxterror
syntaxterror's picture

Everyone gets a bailout. Therefore, nothing is toxic. Next.

Tue, 03/04/2014 - 17:52 | 4509181 salvador
salvador's picture

I think the bet is that central bankers have absolutely no choice but to print money forever because there is no chance that the debts/promises can possibly be paid back with real money.  So if the value of paper is going to decline at an accelerated rate over the next decade, owning absolutely anything other than cash is a good bet.  

 

So why not back up the truck with free paper money to buy toxic anything you can touch - especially real estate loans in countries where rich people from al over the world will want to live if things go south in emerging markets?

 

 

Tue, 03/04/2014 - 18:04 | 4509247 elwind45
elwind45's picture

Its real money because you earned it and you freely give a portion to the central bank on a daily basis. They borrow against your future earnings. The system is so automatic its perpetual motion. They credit themselves yesterday for what you make today knowing that the madder you get the more they get! Before 2007-08 it was the exact same thing and nobody cared?

Tue, 03/04/2014 - 18:06 | 4509264 LawsofPhysics
LawsofPhysics's picture

Yes, and it works right up until the supply lines break in earnest.  history is very clear on that.

Hedge accordingly.

Tue, 03/04/2014 - 17:52 | 4509185 elwind45
elwind45's picture

If it wasn't B.Gross being the subject than would you say that "banks in socialist countries are selling assets to American capitalist at near fire sale prices minutes before dollar collapses"? Or am I being obtuse?

Tue, 03/04/2014 - 19:09 | 4509512 zionhead101
zionhead101's picture

Obtuse seems to the '/sarc' game here on ZH, ... me thinks its cute if your 14 years old, but after that it should have gotten a little tiring.

*

Study what's going on Syria, China, Ukraine, Saudi, and Israel.

It's all about GETTING "EUROS" in this NWO order post USD. Everybody is fighting to get "INCOME", saudi's wanted to take GAZPROM out to sell direct to get permanent EURO stream.

Putin put his ball's on the line to KEEP that EURO stream.

The BIG guys see it coming. Too bad that ZH will not see it until they're hit by the train in the face, like always ZH is fed shit and like Bambi staring in the lights of the oncoming train, and nobody will tell the muppets to get off the tracks.

*

Obtuse, ... no but sadly man-twat club never had any balls, or maybe after you have worked even a short time for Goldman Sach's you  lose the abiltiy to speak honestly about any subject whatsoever.

Tue, 03/04/2014 - 17:53 | 4509190 syntaxterror
syntaxterror's picture

Fuck the EU. Actually, nevermind. Hit the BUY button!

Tue, 03/04/2014 - 17:53 | 4509194 Cornholiovanderbilt
Cornholiovanderbilt's picture

How's that Eike Batista bond maturity looking Bill? 

Tue, 03/04/2014 - 18:47 | 4509195 IridiumRebel
IridiumRebel's picture

DIMCO

Tue, 03/04/2014 - 17:54 | 4509203 sangell
sangell's picture

Maybe Yanukovichs home mortgage is owned by an Italian bank. They are supposed to have a lot exposure to the Ukraine.

Tue, 03/04/2014 - 17:55 | 4509205 kito
kito's picture

toxic debt? what does that mean? is that not language that once existed before the world became safe and warm and cuddly thanks to our powerful and benevolent overlords? no reason to use such antiquated language here on zh......

Tue, 03/04/2014 - 17:56 | 4509208 koncaswatch
koncaswatch's picture

So why did El Erain leave? What was it, again?

Tue, 03/04/2014 - 18:22 | 4509339 Rainman
Rainman's picture

personal sanitation issues

Tue, 03/04/2014 - 17:59 | 4509222 Pairadimes
Pairadimes's picture

Just re-read all the current ZH headlines. Did I somehow sleep through March? Is today April Fools Day?

Tue, 03/04/2014 - 18:05 | 4509255 LawsofPhysics
LawsofPhysics's picture

Truth is indeed stranger than fiction, apparently.

Tue, 03/04/2014 - 18:02 | 4509240 vote_libertaria...
vote_libertarian_party's picture

I smell doubling down desperation.

 

(and it looks like this cycles fall guy)

Tue, 03/04/2014 - 18:04 | 4509249 Joenobody12
Joenobody12's picture

He plans on jump off at the last moment.

Tue, 03/04/2014 - 18:06 | 4509261 Yen Cross
Yen Cross's picture

   I thought Gross was already buying all that toxic crap. Me thinks he's just going public with it. Spanish and Italian 10s have no business being below 3.5%. Hell, they have no business being below 5.00%.

Tue, 03/04/2014 - 18:11 | 4509282 Flying Wombat
Flying Wombat's picture

Yeah, PIMCO has been buying toxic crap.  Odd.

Bill Gross is an avid stamp collector.  Maybe PIMCO can start a philatest fund next.  :-)    

Tue, 03/04/2014 - 18:37 | 4509408 buzzsaw99
buzzsaw99's picture

If Bill doesn't jump in there then Fidelity and Calpers get to have all the fun. ;)

Tue, 03/04/2014 - 18:10 | 4509279 Ioannis
Ioannis's picture

Ahhhh... they figured out the truth about Fukushimas effect over the next few years... time to buy Europe...

Tue, 03/04/2014 - 18:12 | 4509285 hugovanderbubble
hugovanderbubble's picture

PIMCO = AIG , 

 

God bless mohamed El Erian...

Tue, 03/04/2014 - 18:16 | 4509304 elwind45
elwind45's picture

Hang on got to go Bill needs a caretaker and a helicoptor pilot

Tue, 03/04/2014 - 18:17 | 4509313 jomama
jomama's picture

Bill's rocking a pretty mean cocksweeper in that shot.

Tue, 03/04/2014 - 18:33 | 4509382 Eahudimac
Eahudimac's picture

If nothing else, I learn the latest, greatest perverse sexual slang on Zerohedge. 

Tue, 03/04/2014 - 21:49 | 4510072 UselessEater
UselessEater's picture

me to, problem now is I have to self-edit a lot when talking!!

Tue, 03/04/2014 - 19:52 | 4509693 WillyGroper
WillyGroper's picture

ROFL

Tue, 03/04/2014 - 18:22 | 4509334 theprofromdover
theprofromdover's picture

They cant just sit on their hands.

They know they should, but cant resist the urge to spend someone else's money.

Tue, 03/04/2014 - 18:25 | 4509353 h0oS
h0oS's picture

Bulls make money, Bears make money and now it would seem PIGS make money as well. We live in truley fucked times.

Tue, 03/04/2014 - 18:31 | 4509374 Gringo Viejo
Gringo Viejo's picture

Why Not? It's all fake money anyway.

Tue, 03/04/2014 - 18:33 | 4509381 NOTaREALmerican
NOTaREALmerican's picture

When B H Gross talks,  people listen.

Tue, 03/04/2014 - 18:34 | 4509389 GrinandBearit
GrinandBearit's picture

He cannot be that stupid.

TPTB must've held a gun to his head.

Tue, 03/04/2014 - 18:34 | 4509393 Peter Pan
Peter Pan's picture

This all reminds of the fellow who joined the French Foreign Legion.

One Saturday afternoon a cry was heard, "THE CAMELS ARE COMING"

Soldiers all rushed out and had sex with the camels.

The new soldier was bewildered by all this but said nothing as he watched the stampede of men going out and grabbing a camel.

This however went on week after week and one day as they were all rushing out, he grabbed one of his fellow soldiers by the arm and asked him, "What's the great rush? You guys are only screwing camels."

The soldier pulled his arm away and started running but turned his head and called back, "YOU DON'T WANT TO GET AN UGLY ONE DO YOU?"

 

Tue, 03/04/2014 - 18:38 | 4509410 MillionDollarBoner_
MillionDollarBoner_'s picture

"Virginie Maisonneuve"

The Virgin of the Ninth House

How very caballistic ;o)

http://www.birlacenter.com/astrology/house/the-ninth-house

 

Tue, 03/04/2014 - 18:39 | 4509414 falak pema
falak pema's picture

But but But, Warren keeps saying that US stocks and bonds are the mother lode of all capital invesment of the next decades ! 

Why does Gross challenge the Omaha sage? 

Tue, 03/04/2014 - 19:02 | 4509489 zionhead101
zionhead101's picture

Intelligent rat's jump the ship. For 60+ years Buffett got rich by Welfare for corporations, lying, and buying cherry-cokes, steaks and whores for politicians.

You all know what Buffett say's and does is 180 degrees.

Gross on the other hand is jumping ship, cuz the Titanic is going down, and he wan't some good shit.

It's fairly clear that the 'EURO' is the nicest tradeable paper on earth, that they'll bail out all, and the USA will be ran to the ground bailing out Europe ( thanks zio- ).

*

Everybody wants Euros, ... GAZPROM, Israel, Saudi's, and the USA men who want to preserve their wealth.

Counter intuitive to the ZH moronity I know, ... but like we say, ZH is always wrong 100% of the time.

Tue, 03/04/2014 - 18:48 | 4509442 jubber
jubber's picture

Perhaps he is frontrunning the ECB as he did the Fed?

Tue, 03/04/2014 - 18:57 | 4509469 limacon
limacon's picture

It is called Spasm . something like Stoke-Cheyne aspiration . Found in complex systems when they are at inflexion points . About to undergo major phase changes .

Tue, 03/04/2014 - 18:59 | 4509477 I Write Code
I Write Code's picture

Nah, it's not PIMCO=AIG, it's PIMCO=Countrywide and PIMCO=BofA

But those, of course, went bad.

PIMCO is buying into the QE-forever story, moar QE every day.

Who knows, maybe that's right.

Tue, 03/04/2014 - 19:00 | 4509478 Rehab Willie
Rehab Willie's picture

Confucius say... he who thirsty for yield, drink from toilet.

Tue, 03/04/2014 - 19:30 | 4509576 pitz
pitz's picture

Wouldn't it be poetic justice to see Gross and PIMPCO get nuked on eating too much of this trash.  Along with the rest of the worthless trash that is in their bond portfolios.

Tue, 03/04/2014 - 19:35 | 4509600 Spungo
Spungo's picture

I'll reserve judgement. I'm guessing PIMCO knows a hell of a lot more about bonds than I do. What looks crazy to me might somehow be a good idea. The best bargains are found in things nobody else wants to touch.

Tue, 03/04/2014 - 19:38 | 4509619 disabledvet
disabledvet's picture

If stock markets crash in Europe tomorrow this guy will look like the "dumbest genius in history." Move along...

Tue, 03/04/2014 - 20:31 | 4509857 Blankenstein
Blankenstein's picture

hmmm that new look....

 

Maybe Bill's getting out of bonds and into porn.

 

 

Tue, 03/04/2014 - 22:44 | 4510263 homiegot
homiegot's picture

Don't look at the man in the eyes.

Wed, 03/05/2014 - 00:46 | 4510581 Johnny Cocknballs
Johnny Cocknballs's picture

Yeah, keep an eye on those maturities, Bill.

Dumb cunt.

 

Wed, 03/05/2014 - 01:55 | 4510698 Rearranging Dec...
Rearranging Deckchairs's picture

Oh sweet the Corzine play. Worked out so well for him and all people who got corzined. And its gone. 

Wed, 03/05/2014 - 06:12 | 4510947 viator
viator's picture

Coming, PIMCO, the mother of all bailouts.

Do NOT follow this link or you will be banned from the site!