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Posts Tagged ‘Gross’

Is PIMCO Setting Up Another Conflict Of Interest?

Welcome to Lawrence Delevingne of Clusterstock!

Is PIMCO Setting Up Another Conflict Of Interest?

bill gross generic pimco tbiCourtesy of Lawrence Delevingne

PIMCO was already scary big, but now the fund has even more power.

The bond king has signed on with the New York Fed as a Term Asset-Backed Securities Loan Facility (TALF) "collateral monitor." That means that PIMCO will have say in valuating assets that affect its own portfolio.

As the Project on Government Oversight writes:

"These collateral monitors have an important job: if PIMCO or Trepp determines that an asset posted as collateral will perform poorly under certain economic conditions, the New York Fed might decide to decrease its loan to that borrower. So you’d think that the New York Fed would want to pick a collateral monitor that could provide independent, unbiased advice on the valuation of these assets, right?

As it turns out, however, PIMCO may already have a deeply entangled stake in many of these assets, thanks to its involvement in multiple bailout programs as well as its own private investments. Although PIMCO surprised many last month by withdrawing its application for the Public Private Investment Program, it’s still serving as an asset manager for the New York Fed’s agency mortgage-backed securities purchase program and Commercial Paper Funding Facility. And as of June 30, 2009, PIMCO is managing $982,636,884 in total net assets under its own Mortgage-Backed Securities Fund."

Now, as POGO notes, PIMCO isn’t accused of any blatant misconduct — the NY Fed prevents TALF collateral monitors from decision-making — and hiring them makes sense given their asset management prowess. But like BlackRock, PIMCO is another example of groups with skin in the game helping run the government’s bailouts.

See Also:

Bill Gross: PIMCO Will Manage Bailout Fund For Free

Obama’s Bank Plan Is A ‘PIMCO Bailout’

Why PIMCO Would Overpay For Bank Assets

 


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Zero Hedge

UMich Consumer Sentiment Drops For 2nd Month In A Row, First Time Since Oct 2013

Courtesy of ZeroHedge. View original post here.

Submitted by Tyler Durden.

For the first time since October 2013, UMich Consumer Sentiment dropped for consecutive months (printing a final 93.0 for March down from 95.4 in Feb, but above the flash print earlier in the month). Under the surface there are concerns with an increasing number of respondents noting that household finance are worse than 5 years ago, and an increasing number of people seeing now as a "bad time to buy" a house or car.

Charts: bloomberg

Charts: Bloomberg

...

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Phil's Favorites

SNB Warns of "Temporary Deflation", Promises Further "Unconventional Measures" Including Forex Interventions to Achieve "Stability"

Courtesy of Mish.

Unconventional Yields

Swiss Bonds are negative out to 10 years. They briefly went negative out to 15 years in the wake of the sudden removal of the Swiss National Bank peg to the euro back on January 13 as shown in the following chart.

Swiss 15-Year Bond Yield



Yield on 20-year Swiss bonds plunged to 0.10% on January 13 as well. Today, you can get 0.19% for 15 years or 0.31% for 20 years. That's how crazy things are.

SNB Warns of "Temporary Deflation"

Please consider SNB Warns of ‘Difficult Times’ as Curr...



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Chart School

Q4 GDP Third Estimate Remains Unchanged at 2.2%

Courtesy of Doug Short.

The Third Estimate for Q4 GDP, to one decimal, came in at 2.2 percent, unchanged from the Second Estimate. Today's number was a minor disappointment for most economic forecasts, which were looking for a somewhat higher Third Estimate. For example, both Investing.com and Briefing.com had forecast of 2.4 percent.

Here is an excerpt from the Bureau of Economic Analysis news release:

Real gross domestic product -- the value of the production of goods and services in the United States, adjusted for price changes -- increased at an annual rate of 2.2 percent in the fourth quarter of 2014, according to the "third" estimate released by the Bureau of Economic Analysis. In the third quart...

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Promotions

Watch Phil on Money Talk on BNN Now!

Kim Parlee interviews Phil on Money Talk. Be sure to watch the replays if you missed the show last night. As usual, Phil provides an excellent program packed with macro analysis, important lessons and trading ideas. (And get this, Obama - the President - is following Phil on Twitter.) ~ Ilene

 

The replay is now available on BNN's website. For the three part series, click on the links below. 

Part 1 is here. Part 2 is here. Part 3 is here.   ...

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All About Trends

Mid-Day Update

Reminder: David is available to chat with Members, comments are found below each post.

Click here for the full report.




To learn more, sign up for David's free newsletter and receive the free report from All About Trends - "How To Outperform 90% Of Wall Street With Just $500 A Week." Tell David PSW sent you. - Ilene...

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Insider Scoop

Stifel, Bank Of America Are Talking About Apollo Education

Courtesy of Benzinga.

Related APOL Stocks Hitting 52-Week Lows Morning Market Losers Apollo falls on sales, outlook (Investor's Business Daily)

On Thursday, Stifel issued a report on Apollo Education Group Inc (NASDAQ: APOL) as the stock's volume has not recovered. Stifel lowered its target price from $35 to $25, but still rates Apollo Education as a Buy.

"Our Buy thesis which ...



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Sabrient

Sector Detector: Bulls retake the wheel, with a little help from their friends at the Fed

Reminder: Sabrient is available to chat with Members, comments are found below each post.

Courtesy of Scott Martindale at Sabrient Systems

Well, it didn’t take long for the bulls to jump on their buying opportunity, with a little help from the bulls’ friend in the Fed. In fact, despite huge daily swings in the market averages driven by daily news regarding timing of interest rate hikes, the strength in the dollar, and oil prices, trading actually has been quite rational, honoring technical formations and support levels and dutifully selling overbought conditions and buying when oversold. Yes, the tried and true investing clichés continue to work -- “Don’t fight the Fed,” and “The trend is your friend.”

In this weekly update, I give my view of the cur...



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OpTrader

Swing trading portfolio - week of March, 23rd, 2015

Reminder: OpTrader is available to chat with Members, comments are found below each post.

 

This post is for all our live virtual trade ideas and daily comments. Please click on "comments" below to follow our live discussion. All of our current  trades are listed in the spreadsheet below, with entry price (1/2 in and All in), and exit prices (1/3 out, 2/3 out, and All out).

We also indicate our stop, which is most of the time the "5 day moving average". All trades, unless indicated, are front-month ATM options. 

Please feel free to participate in the discussion and ask any questions you might have about this virtual portfolio, by clicking on the "comments" link right below.

To learn more about the swing trading virtual portfolio (strategy, performance, FAQ, etc.), please click here ...



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Digital Currencies

Bitcoin vs. Uber: Bitcoin Lovers Respond to Mish

Courtesy of Mish.

I recently commented that it would not surprise me if bitcoin plunged to $1.00. That was not a prediction, it was a comment.

Still, I still feel a collapse in bitcoin is likely.

For discussion, please see Cash Dinosaur: France Limits Cash Transactions to €1,000, Puts Restrictions on Gold; Bitcoin End Coming?

In response, reader Creighton writes ...

Hello Mish

While I'm not going to argue the point about the possibility that Bitcoin drops to $1, or less, (that could happen yet, but not for the reasons you propose) I felt it necessary to point out something you seem to have overlooked.

While it's likely that the US government watching Bitco...



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Market Shadows

Kimble Charts: South Korea's EWY

Kimble Charts: South Korea's EWY

By Ilene 

Chris Kimble likes the iShares MSCI South Korea Capped (EWY), but only if it breaks out of a pennant pattern. This South Korean equities ETF has underperformed the S&P 500 by 60% since 2011.

You're probably familiar with its largest holding, Samsung Electronics Co Ltd, and at least several other represented companies such as Hyundai Motor Co and Kia Motors Corp.

...



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Option Review

Cypress Semi Draws Bullish Option Plays

Bullish trades abound in Cypress Semiconductor options today, most notably a massive bull call spread initiated in the July expiry contracts. One strategist appears to have purchased 30,000 of the Jul 16.0 strike calls at a premium of $0.89 each and sold the same number of Jul 19.0 strike calls at a premium of $0.22 apiece. Net premium paid to put on the spread amounts to $0.67 per contract, thus establishing a breakeven share price of $16.67 on the trade. Cypress shares reached a 52-week high of $16.25 back on Friday, March 13th, and would need to rally 4.6% over the current level to exceed the breakeven point of $16.25. The spread generates maximum potential profits of $2.33 per contract in the event that CY shares surge more than 20% in the next four months to reach $19.00 by July expiration. Shar...



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Pharmboy

2015 - Biotech Fever

Reminder: Pharmboy is available to chat with Members, comments are found below each post.

PSW Members - well, what a year for biotechs!   The Biotech Index (IBB) is up a whopping 40%, beating the S&P hands down!  The healthcare sector has had a number of high flying IPOs, and beat the Tech Sector in total nubmer of IPOs in the past 12 months.  What could go wrong?

Phil has given his Secret Santa Inflation Hedges for 2015, and since I have been trying to keep my head above water between work, PSW, and baseball with my boys...it is time that something is put together for PSW on biotechs in 2015.

Cancer and fibrosis remain two of the hottest areas for VC backed biotechs to invest their monies.  A number of companies have gone IPO which have drugs/technologies that fight cancer, includin...



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Stock World Weekly

Stock World Weekly

Newsletter writers are available to chat with Members regarding topics presented in SWW, comments are found below each post.

Here's this week's Stock World Weekly.

Click here and sign in with your user name and password. 

 

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Help One Of Our Own PSW Members

"Hello PSW Members –

This is a non-trading topic, but I wanted to post it during trading hours so as many eyes can see it as possible.  Feel free to contact me directly at jennifersurovy@yahoo.com with any questions.

Last fall there was some discussion on the PSW board regarding setting up a YouCaring donation page for a PSW member, Shadowfax. Since then, we have been looking into ways to help get him additional medical services and to pay down his medical debts.  After following those leads, we are ready to move ahead with the YouCaring site. (Link is posted below.)  Any help you can give will be greatly appreciated; not only to help aid in his medical bill debt, but to also show what a great community this group is.

http://www.youcaring.com/medical-fundraiser/help-get-shadowfax-out-from-the-darkness-of-medical-bills-/126743

Thank you for you time!




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About Phil:

Philip R. Davis is a founder Phil's Stock World, a stock and options trading site that teaches the art of options trading to newcomers and devises advanced strategies for expert traders...

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About Ilene:

Ilene is editor and affiliate program coordinator for PSW. She manages the site market shadows, archives, more. Contact Ilene to learn about our affiliate and content sharing programs.

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