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PIMCO Liquidations Begin; And So Does The Retaliation: All Bill Gross Tweets Deleted

Tyler Durden's picture




 

The last few days have been hectic for PIMCO executives. As we already noted, expectations of outflows persist and today's open in CDS markets suggested major concerns among market participants that PIMCO redemptions would force selling through an illiquid market. Sure enough, Bloomberg reports that PIMCO's Total Return Fund ETF was behind the auction of more than $170m of Fannie Mae CMBS on Friday (and more BWICs were seen today). As one trader noted, "you're going to sell your most liquid stuff first." Additionally, PIMCO has seen fit to delete all Bill Gross' tweets... so here are the last six months for the record.

As Bloomberg reports, the PIMCO liquidations have begun...

Pimco Total Return ETF behind auction of more than $170m of Fannie Mae CMBS on Friday, according to person with knowledge of the matter, who asked not to be named because the seller wasn’t disclosed.

 

List included most of ETF’s largest holdings in sector, according to Empirasign and Bloomberg data

 

Dealers also circulating ~$77m Fannie CMBS BWIC today with bonds in sizes similar to at least most of $3.6b ETF’s other holdings of the DUS securities, the data show

 

“You’re going to sell your most liquid stuff first. You don’t want to be a forced seller of anything. I would think these lists are going to be absorbed pretty well,” Brean Capital strategist Scott Buchta said in telephone interview

 

Other auction lists containing bonds in similar sizes to Pimco ETF’s holdings include: ~$59m of agency CMOs on Friday, ~$62m of subprime-mortgage securities today, ~$25m of senior CMBS today

h/t @SMulholland_

 

And then... PIMCO removed all of Bill Gross' tweets from the @PIMCO account...

Click image for large legible version of Bloomberg feed of the last 6 months of Bill Gross Tweets via @PIMCO

 

One wonders just what it is that PIMCO is so afraid of... are they about to take a 100% diametric market view to the 'Bond King' and need no evidence left of the entire company's top-down market thesis? Or is it just standard practice?

 

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Mon, 09/29/2014 - 16:51 | 5268226 seek
seek's picture

With PIMCO and Gross on opposites sides... any chance one side was ordered to do something by the Fed the other side wasn't cool with? (i.e. like what happened with Buffet's sudden behavior change in '08?)

Mon, 09/29/2014 - 16:53 | 5268233 kowalli
kowalli's picture

all guilty

Mon, 09/29/2014 - 17:00 | 5268259 negative rates
negative rates's picture

Flood the mkt w/tweets bitches.

Mon, 09/29/2014 - 17:07 | 5268278 Winston Churchill
Winston Churchill's picture

Well, he is a short twat, rich though he is.

Mon, 09/29/2014 - 17:26 | 5268336 LawsofPhysics
LawsofPhysics's picture

...removing the "grossness" of their accounts as it were...

Mon, 09/29/2014 - 17:42 | 5268381 Stackers
Stackers's picture

un-taper in 3, 2, 1 ......

Mon, 09/29/2014 - 19:53 | 5268784 0b1knob
0b1knob's picture

Black swan event?   Liquidating that large a position in such a short time could set off an avalanche of selling

I seem to remember the most bond funds are about 50% leveraged.  Few people realize that.   In the last market decline some thinly traded issues like preferred issues had not bids of any kind for weeks at a time.

Mon, 09/29/2014 - 20:33 | 5268906 KnuckleDragger-X
KnuckleDragger-X's picture

It's going to depend on how the average investors see's it. We don't know what the real reason he left is but if its juicy enough the leaks will start and then it might get interesting.

Mon, 09/29/2014 - 22:05 | 5269233 Idaho potato head
Idaho potato head's picture

Another tire blows and the wheel disintegrates.

Mon, 09/29/2014 - 17:27 | 5268339 Canadian Dirtlump
Canadian Dirtlump's picture

deleting his tweets is hilarious. It's like getting a haircut after being diagnosed with stage 4 cancer.

Mon, 09/29/2014 - 18:17 | 5268487 bilejones
bilejones's picture

Perhaps his tweets were the "erratic behaviour" for which he was about to be canned.

 

A quick scan of them seems to indicate that he was all over the place like a French skin disease

Mon, 09/29/2014 - 19:22 | 5268691 F0ster
F0ster's picture

Perhaps Bill Gross leaving Pimco is the Fed ordered bondpocalyspe. Just blame a boardroom disagreement for the total selloff of bonds.

Mon, 09/29/2014 - 22:37 | 5269337 junction
junction's picture

Tweets are harmless but I wonder what happens when the nail guns come out.

Mon, 09/29/2014 - 23:26 | 5269507 TheReplacement
TheReplacement's picture

It is well known that people tend to shoot themselves 7-8 times with nailguns.  Gotta ban them semi autos.

Mon, 09/29/2014 - 16:54 | 5268237 Eireann go Brach
Eireann go Brach's picture

Skeletor is takng his yoga mat to other shores! 

Mon, 09/29/2014 - 16:56 | 5268239 coulous
coulous's picture

Pimco bought some EU peripheric bonds, nowadays ?

Boom

http://europe.pimco.com/EN/Insights/Pages/PIMCO-Euro-Income-Bond-Strateg...

Mon, 09/29/2014 - 16:57 | 5268247 trader1
Mon, 09/29/2014 - 17:02 | 5268251 Rainman
Rainman's picture

good ol whatshisname ....At the conclusion of the game, the King and the Pawn go into the same box.

Mon, 09/29/2014 - 23:27 | 5269509 TheReplacement
TheReplacement's picture

I like that.

Mon, 09/29/2014 - 17:00 | 5268256 williambanzai7
williambanzai7's picture

Pimco, the new Ginsu...

Mon, 09/29/2014 - 17:04 | 5268270 coulous
coulous's picture

#askDraghi : is ECB QE enough calibrate to buy all Pimco peripheric bonds to sell ?

Mon, 09/29/2014 - 17:15 | 5268299 besnook
besnook's picture

did gross flee pimco because he realized his total return fund was about to blow up compliments of the fed. not wanting to be responsible for total blowup(investors were already leaving his funds months before he left), he repositioned himself in a new fund(13mil? wtf) where he did not have to reorganize a fund entrenched in a trade that was about to run its course that would be too illiquid to escape without devastation.

watch the trades in the new fund. watch what he says about his new book. this is tied to el arian's resignation and gross's resignation may have been planned at that time.

is this the real end of the bond bull?

Mon, 09/29/2014 - 17:23 | 5268321 NDXTrader
NDXTrader's picture

You bring up an interesting question. When El-Erian left the press made it out to be Gross v. El-Erian with Gross winning. But obviously Gross was on shaky ground as well. Could it be that they both staged their demise at PIMCO to get out before it went KABOOM?

Mon, 09/29/2014 - 17:29 | 5268347 LawsofPhysics
LawsofPhysics's picture

Should rates rise, Gross and El-Erian will be the least of the Fed's problems.

Mon, 09/29/2014 - 17:37 | 5268367 Bell's 2 hearted
Bell's 2 hearted's picture

Sorry, "Kaboom" not in the cards (in the near/mid term)

Mon, 09/29/2014 - 20:36 | 5268917 KnuckleDragger-X
KnuckleDragger-X's picture

How about 'splat'? ;-)

Mon, 09/29/2014 - 19:34 | 5268728 WillyGroper
WillyGroper's picture

 How might DTCC & Cede co. play into this?

This shifting of collateral bankrupting municipalities?

Considering the rigged SIPC scam on clawbacks (plebs only) for the obvious ponzi scams the regulatory agencies have ignored, we're so hosed.

 

Is this the big one, Elizabeth?

Mon, 09/29/2014 - 17:16 | 5268303 Bobby Lee
Bobby Lee's picture

The Fed will smooth this over with small change from the coffee can in the break room.

Mon, 09/29/2014 - 17:20 | 5268311 Cognitive Dissonance
Cognitive Dissonance's picture

Every money management firm follows a scorched Earth policy when a representative or executive leaves. The recently departed quickly becomes the enemy. I would not be surprised if they escorted Gross to the door with an armed guard and they most definitely won't let him back in to clean out his desk.

<Where would you like your belongings shipped?>

Mon, 09/29/2014 - 17:30 | 5268350 paul steinert
paul steinert's picture

I would fire any employee who spent as much time tweeting as Gross did.

Mon, 09/29/2014 - 17:36 | 5268364 Bell's 2 hearted
Bell&#039;s 2 hearted's picture

Good riddance

 

Gross and his stamp collection needed to take a hike long ago

 

PIMCO will be better off in long run without him

Mon, 09/29/2014 - 17:45 | 5268389 DelusionalGrandeur
DelusionalGrandeur's picture

"You didn't tweet that."

Mon, 09/29/2014 - 17:52 | 5268418 kchrisc
kchrisc's picture

Tweet the Twats!

An American, not US subject.

Mon, 09/29/2014 - 17:56 | 5268437 g'kar
g&#039;kar's picture

Distractions are such a wonderful and many splendored thing.

Mon, 09/29/2014 - 18:06 | 5268464 MsCreant
MsCreant's picture

I acknowledge what I type here is too hopeful. I keep looking for a hero. Here goes.

What if Bill Gross is a terrorist? An aging one with an ax to grind? OH THIS COULD BE SO FUCKING EXCELLENT.

What if he has had enough of central bankster bullshit, what if he really had the resources to go after the Fed where they live and blow this whole shit show to hell? Rock and roil the markets. Make big chaotic waves they cannot anticipate? Get some of his best bear buddies (I don't mean big hairy gay guys either) to do like minded shit. 

We have fantasized about someone going into the gold or silver market and taking delivery. Germany did it and it didn't matter. They have to sit and wait for their gold, but no one is calling the whole scam what it is. Germany is afraid they will get nothing if they do that.

But this, leaving and taking his assets and investors with him, and showing how 2T really ain't 2T unless you have it in your fucking hands. Watch the late exiting folks bitch because their shit ain't worth shit. So much Corzine, so many lawsuits, so little time and ability to attend to it all because it is an avalanche.

I'll go to my corner now. But it would be so cool. Biggest bank run in history. No faith any where. Heh, heh, heh, heh.

 

Mon, 09/29/2014 - 18:17 | 5268488 g'kar
g&#039;kar's picture

I like the way you think, conspiratorial with a touch of irony.

Mon, 09/29/2014 - 18:33 | 5268536 manofthenorth
manofthenorth's picture

FUCK YEAH !!!!!!!! BURN BABY BURN !!!

 I WANT TO SEE THIS BIG FESTERING PILE OF SHIT BURN NOW !!!!

I will miss the discounted PMs however.

Mon, 09/29/2014 - 18:38 | 5268552 Day_Of_The_Tentacle
Day_Of_The_Tentacle's picture

@Miss C - I remember a post Gross made maybe back in 2012 that was published on ZH. In the note he was basically advicing clients to start the change of horses to Gold and other hard stuff.

Maybe he simply got tired of waiting for his own and his following clients' bets to materialize, so he is now nudging the matter a wee bit. Yer know - this girl can dream too ;-)

Tue, 09/30/2014 - 00:08 | 5269627 MsCreant
MsCreant's picture

Someone out there, or a collection of someones, could detonate it, if they wanted to. We can dream.  ;-)

Mon, 09/29/2014 - 18:50 | 5268596 walküre
walküre's picture

Bill Gross IS Gordon Gekko

Mon, 09/29/2014 - 20:13 | 5268745 Miss Expectations
Miss Expectations's picture

What if, instead of yelling FIRE, he simply rose from his front row seat and slowly walked out of the theatre.  Wouldn't this give his followers the best chance of getting out alive?

 

Mon, 09/29/2014 - 23:42 | 5269556 Wild Theories
Wild Theories's picture

no, that's what China and Russia is doing, slowing moving away from USD whilst accumulating hard assets with the USD they have.

Tue, 09/30/2014 - 00:09 | 5269633 MsCreant
MsCreant's picture

They are so public. I don't think that whole "walk away quietly" is the goal. It never is when the Fed does it.

Mon, 09/29/2014 - 20:38 | 5268931 KnuckleDragger-X
KnuckleDragger-X's picture

+1 That's some first class paranoia....

Mon, 09/29/2014 - 18:10 | 5268479 Drummond
Drummond's picture

That's my plumbers not turning up then.

Mon, 09/29/2014 - 18:24 | 5268508 Thomas
Thomas's picture

This has proven far more interesting than I first realized

Mon, 09/29/2014 - 18:54 | 5268607 zipit
zipit's picture

Deleted his tweets?!  Wow, they really showed him.

Tue, 09/30/2014 - 07:28 | 5270100 Pumpkin
Pumpkin's picture

They show him and everyone else.  What they are scared of.

Mon, 09/29/2014 - 19:07 | 5268650 teslaberry
teslaberry's picture

what if this pimco vs gross  'fight' is nothing more than a charade to fleece pimco of its assets by trading them. perhaps he will be using his capital bomb at janus to help finance the wash trading necessary to put money in the pockets of those few who are 'in' on the charade. 

 

 

a little "ackerman versus icah" bulllshit. a fake dance for the financial media while both 'Opponents" make money hand over fist with one another by working together behind the scenes....

Mon, 09/29/2014 - 22:04 | 5269213 KuriousKat
KuriousKat's picture

This is some serious sht. Pimco is parent to Allianz who date to pre world WarI, Kaiser and stuff... ..which paid off the Insurance to Malaysias airplane disappearances and crashes.. ..then he has more to worry about than falling out the 33rd floor somewhere with a nailgun as a parachute..These are old school..

He better have some pictures or sometin.ya know? .Like I know what you did last summer 


..maybe this is something that will blow the Fed  wide open!

Mon, 09/29/2014 - 19:47 | 5268763 malek
malek's picture

 

“You’re going to sell your most liquid stuff first.”

Hey isn't that how LTCM also thought, a few months before the end!

Mon, 09/29/2014 - 20:57 | 5268998 seek
seek's picture

Lehman, too. It's basic B-school stuff to save your business, you sell liquids first.Nothing surprising there.

However, it's also a signal your business needs to be saved.

Tue, 09/30/2014 - 01:59 | 5269807 hibou-Owl
hibou-Owl's picture

You’re going to sell your most liquid stuff first.”

If they do sell the good stuff first, and they lose 50% that will leave the scum in the bottom.
The fund quality will suffer!

Mon, 09/29/2014 - 20:11 | 5268825 robnume
robnume's picture

Fuck Pimpco. When they go bust, that cackling laugh you're going to hear is me. TPTB r robnume.

Mon, 09/29/2014 - 20:19 | 5268858 Smiley
Smiley's picture

ButtHurt, so much buttHurt LOL!

Mon, 09/29/2014 - 20:26 | 5268881 mattgallis
mattgallis's picture

Why do we care?

Mon, 09/29/2014 - 20:44 | 5268946 KnuckleDragger-X
KnuckleDragger-X's picture

I'd say schadenfreude.....

Mon, 09/29/2014 - 23:57 | 5269586 Wild Theories
Wild Theories's picture

why do you care if we care? why do we care if you don't care?

 

why speak or even come into the thread if you don't care?

yet you cared enough to show up and tell us you 'don't care', that nice, but we don't care

Tue, 09/30/2014 - 00:33 | 5269676 fibonacci's claus
fibonacci&#039;s claus's picture

i'd walk up to gross bill with some of those fresh 1970's high heeled shoes on, you know the 1's with the fish tank heels.  i'd be like "what up pimco?"  where dat pimp cup at pimp daddy?  u pimpin MF!  who u think u r wit doze james BOND riding jackets man?  cool breeze.  what up necka? 

and then he would look at me wearing one of those two faced janus halloween masks on and ask me that eyes wide shut question nobody wants to hear.............. "whats the password for the house." 

and i'd be like "hey baby the center is holding"

Tue, 09/30/2014 - 08:14 | 5270166 StrikerMax
StrikerMax's picture

Oh yeah!!!

It's coming and it's going to be hard when SHTF on Bonds ... Burn Baby Burn !!! Come on !!   Start the Party ! :)

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