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Bill Gross

William Hunt "Bill" Gross (born April 13, 1944) is an American financial manager and author. He co-founded Pacific Investment Management (PIMCO).

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I am Kobe. You are LeBron James, i have five rings, you have two rings - probably going to five.

– Bill Gross

Found on Reuters 6 months ago Business

I've had a wonderful ride for over 40 years in my career - trying at all times to put client interests first while inventing and reinventing active bond management along the way.

– Bill Gross

Found on Reuters 6 months ago Business

Interest rates in much of the developed world are distorting and limiting future returns below historical expectations.

– Bill Gross

Found on Reuters 6 months ago Business

Negative returns and principal losses in many asset categories are increasingly possible unless nominal growth rates reach acceptable levels, i don’t like bonds; I don’t like most stocks; I don’t like private equity. Real assets such as land, gold, and tangible plant and equipment at a discount are favored asset categories.

– Bill Gross

Found on Reuters 3 years ago Top News

Banks, insurance companies, pension funds and Mom and Pop on Main Street are stripped of their ability to pay for future debts and retirement benefits, central banks seem oblivious to this dark side of low interest rates. If maintained for too long, the real economy itself is affected as expected income fails to materialize and investment spending stagnates.

– Bill Gross

Found on Reuters 3 years ago Top News

The reason nominal growth is critical is that it allows a country, company or individual to service their debts with increasing income, allocating a portion to interest expense and another portion to theoretical or practical principal repayment via a sinking fund, without the latter, a credit-based economy ultimately -devolves into Ponzi finance, and at some point implodes. Watch nominal GDP growth.

– Bill Gross

Found on Reuters 3 years ago Top News

They buy the bonds by printing money or figuratively dropping it from helicopters – expanding their balance sheets in the process, they then remit any net interest from their trillions of dollars or yen bond purchases right back to their Treasuries. The money in essence is free of expense and free of repayment as long as the process continues uninterrupted.

– Bill Gross

Found on Reuters 3 years ago Top News

Chair (Janet) Yellen and others will be disheartened by this change in culture.

– Bill Gross

Found on Reuters 3 years ago Top News

Capital gains and the expectations for future gains will become Giant Pandas – very rare and sort of inefficient at reproduction, i'm saying that developed and emerging economies are flying at stall speed and they've got to bump up nominal GDP growth rates or else. Cross your fingers.

– Bill Gross

Found on Reuters 3 years ago Business

The real market and the real economy await a different conclusion as losses from negative rates result in capital losses, not capital gains, investors cannot make money when money yields nothing. Unless... nominal GDP can be raised to levels that allow central banks to normalize short-term interest rates, then south instead of north is the logical direction for markets.

– Bill Gross

Found on Reuters 3 years ago Business

I think central banks have gone too far...certainly the ECB (European Central Bank) and the BoJ (Bank of Japan) have gone into negative territory and I think there are long-term consequences for that, the closeness to the zero-bound (interest rates) basically robs savers of their ability to earn money and threatens business models, such as insurance companies and banks in terms of their margin - and certainly, pension funds in terms of their ability to earn money.

– Bill Gross

Found on Reuters 3 years ago Business

We sold the bonds the first day that the problems arrived - and that was three months ago.

– Bill Gross

Found on Reuters 3 years ago Business

A 30-year Treasury at 2.5 percent can wipe out your annual income in one day with a 10 basis point increase.

– Bill Gross

Found on Reuters 3 years ago Company News

A 30-year Treasury at 2.5 percent can wipe out your annual income in one day with a 10 basis point increase, the secret in a negative interest rate world that poses extraordinary duration risk for AAA sovereign bonds is to No 1, keep bond maturities short and No 2 borrow at those attractive yields in a mildly levered form that provides a yield and expected return of 5-6 percent.

– Bill Gross

Found on Reuters 3 years ago Business

But it can be done, closed end funds at deep discounts, highly certain acquisition arbitrage stocks, as well as volatility sales at tails are general examples.

– Bill Gross

Found on Reuters 3 years ago Business

There are a lot of closed-end funds that are selling 10-15 percent discounts to net asset values. That means you are buying something at 80-95 cents on the dollar, some of these closed-end funds deal in, yes, relatively high-quality municipal bonds.

– Bill Gross

Found on Reuters 3 years ago Business

I would stick to high-quality sovereign debt, as in U.S. Treasuries.

– Bill Gross

Found on Reuters 3 years ago Business

It is true that if much of the developing world is younger demographically (think India), then developed nations could and should transfer an increasing percentage of their financial assets to emerging markets to help foot the demographic bills back home, long term then, as opposed to currently, think about increasing your asset allocation to the developing world.

– Bill Gross

Found on Reuters 3 years ago Company News

Demographics may not rule absolutely, but they likely will dominate investment markets and returns for the next few decades until the Boomer phenomena fades away.

– Bill Gross

Found on Reuters 3 years ago Company News

Asset returns will therefore be lower than historical norms, especially because interest rates are close to 0 percent in developed countries.

– Bill Gross

Found on Reuters 3 years ago Company News

Japan for years has doubled down on its Quantitative Easing and Mario Draghi's statement of several years past, 'Whatever it takes' - is a Martingale promise in disguise.

– Bill Gross

Found on Reuters 3 years ago Company News

Zero destroys existing business models such as life insurance company balance sheets and pension funds, which in turn are expected to use the proceeds to pay benefits for an aging boomer society, these assumed liabilities were based on the assumption that a balanced portfolio of stocks and bonds would return 7-8 percent over the long term.

– Bill Gross

Found on Reuters 3 years ago Business

But like (former Fed chairman Paul) Volcker recognized in 1979, the time has come for a new thesis that restores the savings function to developed economies that permit liability based business models to survive – if only on a shoestring – and that ultimately leads to rejuvenated private investment, which is the essence of a healthy economy, near term pain? Yes. Long term gain? Almost certainly. Get off zero now!

– Bill Gross

Found on Reuters 3 years ago Business

Do central bankers not observe that Detroit, Puerto Rico, and soon Chicago, Illinois cannot meet their promised liabilities?

– Bill Gross

Found on Reuters 3 years ago Business

That, of course, is a stretch of some accountant's or actuary's imagination.

– Bill Gross

Found on Reuters 3 years ago Business

Cash or better yet' near cash' such as 1-2 year corporate bonds are my best idea of appropriate risks/reward investments, the reward is not much, but as Will Rogers once said during the Great Depression –.

– Bill Gross

Found on Reuters 3 years ago Most Read Articles

It is demand that must be increased – yes, China must move more quickly to a consumer-based economy but the developed world must play its part by abandoning its destructive emphasis on fiscal austerity, and begin to replace its rapidly decaying infrastructure that has been delayed for decades.

– Bill Gross

Found on Reuters 3 years ago Most Read Articles

Cash or better yet' near cash' such as 1-2 year corporate bonds are my best idea of appropriate risks/reward investments, the reward is not much, but as Will Rogers once said during the Great Depression -.

– Bill Gross

Found on Reuters 3 years ago Company News

It is demand that must be increased - yes, China must move more quickly to a consumer-based economy but the developed world must play its part by abandoning its destructive emphasis on fiscal austerity, and begin to replace its rapidly decaying infrastructure that has been delayed for decades.

– Bill Gross

Found on Reuters 3 years ago Company News

They should, but their September meeting language must be so careful, that 'one and done' represents an increasing possibility - at least for the next six months, the Fed is beginning to recognize that 6 years of zero bound interest rates have negative influences on the real economy - it destroys historical business models essential to capitalism such as pension funds, insurance companies, and the willingness to save money itself. If savings wither then so too does its Siamese Twin - investment - and with it, long-term productivity, the decline of which we have seen not just in the U.S. but worldwide.

– Bill Gross

Found on Reuters 3 years ago Company News

It is demand that must be increased - yes China must move more quickly to a consumer-based economy - but the developed world must play its part by abandoning its destructive emphasis on fiscal austerity, and begin to replace its rapidly decaying infrastructure that has been delayed for decades.

– Bill Gross

Found on Reuters 3 years ago Company News

They should, but their September meeting language must be so careful, that 'one and done' represents an increasing possibility – at least for the next six months, the Fed is beginning to recognize that 6 years of zero bound interest rates have negative influences on the real economy – it destroys historical business models essential to capitalism such as pension funds, insurance companies, and the willingness to save money itself. If savings wither then so too does its Siamese Twin – investment – and with it, long-term productivity, the decline of which we have seen not just in the U.S. but worldwide.

– Bill Gross

Found on Reuters 3 years ago Business

It is demand that must be increased – yes China must move more quickly to a consumer-based economy – but the developed world must play its part by abandoning its destructive emphasis on fiscal austerity, and begin to replace its rapidly decaying infrastructure that has been delayed for decades.

– Bill Gross

Found on Reuters 3 years ago Business

I was trying to stick to my knitting, and China wasn't really my knitting.

– Bill Gross

Found on Reuters 4 years ago Company News

Old Mutual is an 'old friend' that always had faith in me at Pimco and now has expressed confidence in me at Janus. They will get our best efforts and sincere thanks for the opportunity.

– Bill Gross

Found on Reuters 4 years ago Company News

A purchase of Treasuries and a sale of Bunds allows for not only a potential capital gain if the spread narrows, but a yield pickup while the Rip Van Winkle investor potentially waits for a probable outcome.

– Bill Gross

Found on Reuters 4 years ago Business

For some reason still unbeknownst to me they didn't think that was a good idea and they did fire me, in the last few weeks, it blindsided me; I had no idea that an executive committee could fire a founder and the titular leader of the company.

– Bill Gross

Found on Reuters 4 years ago Company News

With the dollar strengthening and oil prices declining, it is hard to see even the Fed raising short rates until late in 2015, if at all.

– Bill Gross

Found on Reuters 4 years ago Business

Be prepared for low returns in almost all asset categories.

– Bill Gross

Found on Reuters 4 years ago Business

Aside from the United States, the growth outlook for developed countries and many emerging ones is subpar, do not look, therefore, for economic growth to be the magic elixir for 2015.

– Bill Gross

Found on Reuters 4 years ago Business

TIPS look great, to not buy a TIP at 1.5 percent breakeven is to suggest that the Fed simply can't reach their objective, that they can't print enough money. I think they can.

– Bill Gross

Found on Reuters 4 years ago Company News

To not buy a TIP at 1.5 percent breakeven is to suggest that the Fed simply can't reach their objective, that they can't print enough money. I think they can.

– Bill Gross

Found on Reuters 4 years ago Company News