FRE and FNMA debt to benefit ??

Discussion in 'Trading' started by hayman, Sep 6, 2008.

  1. hayman


    What is everyone's opinion on how a government bailout of FRE and FNM, will effect the corresponding Corporate debt ?

    Will Bill Gross' PIMCO funds, namely PTTRX (Total Return Institutional) benefit from such a bailout ??? I see that Bill Gross is very much behind this bailout. Do his bond funds aim to benefit from such a bailout ?

    Opinions on this ????
  2. hayman


    Bullish for Debt
  3. I think the only way to make out here is own the 'short treasury / long agency debt' spread.

    I think overall bearish for debt due to increased risk to treasury bond assets.