Currents of Currency Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Currents of Currency

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Ahda who wrote (348)	10/1/2014 3:15:00 PM
From: Ahda	of 594

One man shook a $42 trillion bond market last week, highlighting just how vulnerable bond prices are to shocks. Bill Gross's surprise departure on Friday from Pacific Investment Management Co. sparked selloffs in some of his biggest wagers, such as inflation-protected U.S. government bonds. The most-traded assets quickly recovered after the exit of the star trader, who dominated the $2 trillion asset manager's investment strategy. But the less-traded ones are still feeling the effects, according to David Leduc, chief investment officer at Standish Mellon Asset Management Co. "What you're seeing most of is a lack of liquidity in the bond market," said Christopher Orndorff, a money manager at Western Asset Management Co. "When you get a dislocation like this, it tends to exacerbate price movements maybe more than what you'd have seen 10 years ago." One person -- even a really important person -- pushing around borrowing costs for nations and companies worldwide, however briefly, shows the increasing fragility of credit markets that have swelled on the heels of trillions of dollars of central-bank stimulus. Debt still largely changes hands off exchanges, through telephone calls and e-mails.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next