Bail-out hands Pimco $1.7bn gain

The Pimco Total Return fund, managed by Bill Gross, reaped a $1.7bn gain following the US government takeover of home loan giants Fannie Mae and Freddie Mac. While shareholders in Fannie and Freddie suffered deep losses, the world’s biggest bond fund saw its biggest ever one-day rise against its benchmark index on Monday, benefiting from Gross’s bet on mortgage bonds issued by the agencies. Gross had made a big shift out of US Treasuries and corporate bonds over the past year and into agency bonds, betting the government would support Fannie and Freddie Mac. By May this year, more than 60% of his $132bn fund was in mortgage debt. On Monday, the fund rose by 1.3%, or $1.7bn. Gross, who co-founded Pimco and has managed the Total Return fund since 1987, was one of the first to call for a bail-out of Fannie and Freddie.

http://ftalphaville.ft.com/blog/2008/09/10/15750/bail-out-hands-pimco-17bn-gain/

 

Just wondering how were the GSE 's bonds affected by the subprime crisis before the bailout ' And what would have been the impact of a bankruptcy or just no bailout until necessary on those bonds ?

Where can you track and chart the yield of these bonds and the spreads to treasuries ?

Bill Gross was unapologetic about lobbying the Treasury for a bailout, I have to wonder whether US politicians are just whores to lobbyists of all kinds .

 

are you serious, or was that rhetorical?

 

Its a 1% gain.

get over it.

His performance over time is not all that

That stupid headline is like saying BRK was up 1000 today.

 

he called for the treasury action because he loves america

 

these guys love to preach about 'free markets'

untill they make a wrong bet

then, in an instant, they become big believers in 'Government'

until their welfare check clears

then, back to preaching about 'free markets'

 

Guess we know a true capitalist by the way he acts, or doesn't act, when he is on the losing side of the trade. Statements not heard often...”I took the risk and lost, but I'll accept the responsibility”. That's what's expected of us little retail traders out here. Seems like the more bailouts that come, the more will be sought, and we will pay the tab. Who's going to bail out the common shareholders of Fannie and Freddie?...yeah, that's what I thought.

Just like many of our politicians. They don't want to be accountable for their decisions, and now it would seem many, though not all, of the big risk takers don't want to be accountable for their actions.

 

Your correct.

 

LOL