Gross Says GOV to Pay $.65 for Bonds

Yahoo!My Yahoo!Mail Make Y! your home pageYahoo! SearchSearch:Sign In New User? Sign UpFinance Home -Help Home InvestingMarket OverviewMarket StatsStocksMutual FundsETFsBondsOptionsIndustriesCurrencyEducationNews & OpinionMarketsInvesting IdeasExpert AdviceSpecial EditionsCompany FinancesProvidersPersonal FinanceBanking & BudgetingCareer & WorkCollege & EducationFamily & HomeInsuranceLoansReal EstateRetirementTaxesHow-to GuidesTech Ticker Get QuotesFinance Search 54387792 Reuters Pimco’s Gross looks to manage government’s rescued assets Friday September 19, 2:51 pm ET NEW YORK (Reuters) - Bill Gross, chief investment officer of Pimco, said he is interested in managing a pool of assets acquired by the government through recent financial rescue plans. “We have interest in managing this giant pool of assets, and we expect to be called,” Gross said on CNBC television in response to a question on whether Pimco had been consulted by the government about doing so. Gross also said he expected the government to buy mortgage-backed securities in the secondary market at about 65 cents on the dollar. The government should get a positive return on a deal in which it will bail out American International Group Inc (AIG - News) with a $85 billion credit facility in exchange for a major stake in the insurer, Gross said. “The return on AIG will be a very positive one,” Gross said, adding that he expects AIG to be “thriving” in five years. Pimco is the world’s biggest bond fund manager.

saw that. talk about trying to manipulate the market. if that happens for real… i’m going to… i’m not sure, but it won’t be pretty.

nolabird032 Wrote: ------------------------------------------------------- > saw that. talk about trying to manipulate the > market. if that happens for real… i’m going > to… i’m not sure, but it won’t be pretty. why would you be against the government making money on this? They took the risk and it will benefit us all if they make money.

who said i’m against the gov’t making money on this? i think gross is trying to pump up the market. its in his best interest to do so… right? whats in the best interest of the market, isn’t necessarily in the best interest of the gov’t if they’re on the other side of the transaction. its just a little fishy if you ask me. maybe i’m becoming jaded from following the news all week. the interest on AIG loan was pretty hefty though. the devil’s in the details… and we don’t know anything yet.

anyhow… it sounds like its going to be an auction. will be interesting. i’m curious how this fits into demand/supply to come up with the best price. it will go to the lowest bidder, but will the gov’t or the companies determine what quantity will be be bought/sold? and how will they determine which securities to include? lots of questions.

There goes Gross talking his book again.

Is he getting 1% of the $5T or so Fan/Fred assets at $$$$$$$