"PIMCO's Gross says "subprime crisis" not iso
1 Mensagem
|Página 1 de 1
"PIMCO's Gross says "subprime crisis" not iso
Bill Gross, o responsável do maior fundo obrigacionista do mundo, tem vindo, nas últimas semanas, a intensificar o seu discurso pessimista sobre o futuro da economia norte-americana.
"NEW YORK, June 26 (Reuters) - Bill Gross, manager of the world's largest bond fund, on Tuesday said the subprime mortgage crisis gripping U.S. financial markets was not an isolated event and will eventually take a toll on the economy.
Gross, the chief investment officer for Pacific Investment Management Co. (Pimco), also said in his July investment outlook newsletter that the crisis would prompt the Federal Reserve to lower the benchmark interest rate by year end.
Gross said in an interview that he had spoken with former Fed Chairman Alan Greenspan on Monday, but declined to say what had been discussed. Greenspan is an economic consultant for Pimco.
In the newsletter, posted at the company's Web site, he said the recent Bear Stearns Cos. (BSC.N: Quote, Profile, Research) hedge fund rescue was reminiscent of the Long-Term Capital Management episode nearly a decade ago.
He was referring to the August 1998 collapse of the steeply leveraged hedge fund Long-Term Capital Management, which triggered worldwide panic and ultimately led the U.S. Federal Reserve Bank of New York to broker a $3.6 billion bailout to keep financial markets stable.
"Shame on you Mr. Stearns, or whoever you were, for scaring us investors like that and moving the Blackstone IPO to the second page of the WSJ," writes Gross, about The Wall Street Journal. "We should have had a week of revelry and celebration of levered risk-taking."
Gross said there are hundreds of billions of dollars of subprime residential mortgage-backed securities (RMBS), derivatives on subprime RMBS and collateralized debt obligations (CDOs) that buy subprime RMBS and/or the derivatives on the RMBS -- all of which he considers "toxic waste."
"Whether or not they're in CDOs or Bear Stearns hedge funds matter only to the extent of the timing of the unwind," said Gross, who manages the $104 billion Pimco Total Return Fund. "To death and taxes you can add this to your list of inevitabilities: the subprime crisis is not an isolated event and it won't be contained by a few days of headlines in The New York Times."
He said the subprime crisis "may be just what the Fed has been looking for: easy credit becoming less easy; excessive liquidity returning to more rational levels."
Nonetheless, Gross said he expects the Fed to issue an "insurance" policy in the form of a lower short-term interest rate over the next six months.
The Fed is expected to keep the benchmark fed funds rate steady at 5.25 percent at its next policy meeting this week.
Gross added that the subprime crisis will reduce consumption and new home building in the next 12-18 months."
(in www.reuters.com)
"NEW YORK, June 26 (Reuters) - Bill Gross, manager of the world's largest bond fund, on Tuesday said the subprime mortgage crisis gripping U.S. financial markets was not an isolated event and will eventually take a toll on the economy.
Gross, the chief investment officer for Pacific Investment Management Co. (Pimco), also said in his July investment outlook newsletter that the crisis would prompt the Federal Reserve to lower the benchmark interest rate by year end.
Gross said in an interview that he had spoken with former Fed Chairman Alan Greenspan on Monday, but declined to say what had been discussed. Greenspan is an economic consultant for Pimco.
In the newsletter, posted at the company's Web site, he said the recent Bear Stearns Cos. (BSC.N: Quote, Profile, Research) hedge fund rescue was reminiscent of the Long-Term Capital Management episode nearly a decade ago.
He was referring to the August 1998 collapse of the steeply leveraged hedge fund Long-Term Capital Management, which triggered worldwide panic and ultimately led the U.S. Federal Reserve Bank of New York to broker a $3.6 billion bailout to keep financial markets stable.
"Shame on you Mr. Stearns, or whoever you were, for scaring us investors like that and moving the Blackstone IPO to the second page of the WSJ," writes Gross, about The Wall Street Journal. "We should have had a week of revelry and celebration of levered risk-taking."
Gross said there are hundreds of billions of dollars of subprime residential mortgage-backed securities (RMBS), derivatives on subprime RMBS and collateralized debt obligations (CDOs) that buy subprime RMBS and/or the derivatives on the RMBS -- all of which he considers "toxic waste."
"Whether or not they're in CDOs or Bear Stearns hedge funds matter only to the extent of the timing of the unwind," said Gross, who manages the $104 billion Pimco Total Return Fund. "To death and taxes you can add this to your list of inevitabilities: the subprime crisis is not an isolated event and it won't be contained by a few days of headlines in The New York Times."
He said the subprime crisis "may be just what the Fed has been looking for: easy credit becoming less easy; excessive liquidity returning to more rational levels."
Nonetheless, Gross said he expects the Fed to issue an "insurance" policy in the form of a lower short-term interest rate over the next six months.
The Fed is expected to keep the benchmark fed funds rate steady at 5.25 percent at its next policy meeting this week.
Gross added that the subprime crisis will reduce consumption and new home building in the next 12-18 months."
(in www.reuters.com)
-
- Administrador Fórum
- Mensagens: 31014
- Registado: 29/10/2002 4:04
- Localização: Aveiro
1 Mensagem
|Página 1 de 1