PIMCO staff

[S2000magician]

@Sweep_the_Leg

@S2000magician

@Sweep_the_Leg

Who edited my post to capitalize pimco?

I did. It looked weird. Sorry. Won’t happen again.

Apology accepted. You’re back on my xmas card list.

Cool!

So . . . yours was the one with the axe?

(I have to admit that, having torn three ACLs – two in Tae Kwon Do – I’m a little uncomfortable with the name Sweep the Leg. My problem; not yours.)

[Sweep_the_Leg]

Merry Xmas to all!

[igor555]

lol ur a funny duder

[Greenman72]

Bill Gross leaving his own firm?

[Griingo]

@Sweep_the_Leg

@bchad

One of the advantages of the fixed income world is that it is harder to create a real index portfolio in bonds, the way you can in stocks. With stocks, all stocks have the same maturity (i.e. never, or at least “until bankruptcy”) and therefore are substitutable (with a few exceptions, like voting/non-voting shares). Bonds change their maturity and duration constantly, and it’s not really practical to own a little bit of every bond out there.

So the advantage of this for the bond manager is that even in an environment where interest rates are rising, there is a role for a manager to manage a portfolio (even if perhaps it is active in the sense of a computer telling you what to buy and sell).

Bonds are basically useful for two reasons 1) to provide an un- or low-correlated source of returns to a stock portfolio, and 2) to neutralize known liabilitiy streams.

There also may be more active management options in foreign bonds, particularly the EM bonds. The level of risk will undoubtedly rise vs. what we saw 10 years ago, but if you need fixed income, it may be one of the few sources of return that can be actively managed for some kind of alpha - that, and high yield.

Pretty good post. Can’t figure out what it has to do with OP’s question, but whatever. It’s the Internets.

I like to think that bchad has a database of lengthy paragraphs ready to be shoehorned into any vaguely related threads…

[Griingo]

pimco have been losing their reputation as a bond fund manager for awhile. they’ll really be fucked when rates start going up though

[former_trader]

@Greenman72

Bill Gross leaving his own firm?

It’s about time.