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Watch CNBC's full interview with PIMCO's Tiffany Wilding
  + stars: | 2023-04-10 | by ( ) www.cnbc.com   time to read: 1 min
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailWatch CNBC's full interview with PIMCO's Tiffany WildingTiffany Wilding, PIMCO North American economist and managing director, joins 'Squawk on the Street' to discuss how the Federal Reserve is receiving recent economic data, PIMCO's recession odds and more.
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailFed will hike rates once more before banking sector stress shows: PIMCO's WildingTiffany Wilding, PIMCO North American economist and managing director, joins 'Squawk on the Street' to discuss how the Federal Reserve is receiving recent economic data, PIMCO's recession odds and more.
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailMoney market funds can be a fools game in the long run, says Pimco's Tony CrescenziTony Crescenzi from Pimco and Darrell Cronk from Wells Fargo join 'Closing Bell Overtime' to discuss expectations for the Fed's balance sheet release, opportunities in the bond market, and credit quality exposure.
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailThe market is appropriately discounting risk in smaller cap companies, says Pimco's Erin BrownePimco's Erin Browne joins 'Closing Bell' to discuss investment in high quality defensive stocks, Chinese stocks fueled by reopening, and a bifurcation in the market.
Watch CNBC's full interview with PIMCO's Libby Cantrill
  + stars: | 2023-03-28 | by ( ) www.cnbc.com   time to read: 1 min
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailWatch CNBC's full interview with PIMCO's Libby CantrillLibby Cantrill, PIMCO head of public policy, joins 'The Exchange' to discuss the policy impacts of the SVB hearing, the Fed's ability to guarantee uninsured deposits, and the issues around bank runs and solvency.
Watch CNBC's full interview with former PIMCO's Paul McCulley
  + stars: | 2023-03-28 | by ( ) www.cnbc.com   time to read: 1 min
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailWatch CNBC's full interview with former PIMCO's Paul McCulleyPaul McCulley, former PIMCO chief economist and Georgetown professor, joins 'Squawk on the Street' to discuss his thoughts on the Fed and rate hikes.
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailCapitol Hill lacks unanimity about expanding bank regulation: Pimco's Libby CantrillLibby Cantrill, PIMCO head of public policy, joins 'The Exchange' to discuss the policy impacts of the SVB hearing, the Fed's ability to guarantee uninsured deposits, and the issues around bank runs and solvency.
Bill Gross and Jeffrey Gundlach expect higher interest rates to hammer growth in the near future. Bond yields signal investors' expectations for growth, inflation, and interest rates in the months and years ahead. The central bank is betting that higher rates will make borrowing more costly and encourage saving over spending, cooling price growth. He also declared in February that stocks are likely to underperform for a while, as higher rates are a drag on company valuations. Gross has previously jabbed at Gundlach over their shared nickname, labeling him the "self-anointed 'bond king'" in an October outlook.
A number of funds could be facing over $100 million in losses on their Credit Suisse investments after the lender's forced merger with its rival UBS . The funds face losses on Credit Suisse's additional tier-1 bonds (AT1), according to CNBC Pro analysis, after Swiss regulators deemed them worthless as part of the emergency merger . The Swiss regulator FINMA saw the merger between Credit Suisse and UBS as a trigger event to write down 16 billion Swiss francs ($17 billion) worth of the bonds. The following table shows the funds that held AT1 bonds with a par amount of at least $100 million each as of Mar. About 80 funds run either directly by PIMCO or one of its affiliates, held Credit Suisse AT 1 bonds, according to CNBC's analysis.
Credit Suisse's (CSGN.S) Additional Tier 1 (AT1) bonds in PIMCO’s mutual funds had been worth about $340 million on Friday, the source familiar with the matter said. PIMCO's current holdings of Credit Suisse bonds, excluding the AT1 debt, were worth over $4 billion, said the source, who was speaking on condition of anonymity. Some Credit Suisse bonds rallied on Monday after the state-backed rescue of the embattled lender. AT1 bonds issued by other European banks, instead, fell sharply on Monday as the treatment of Credit Suisse AT1 bondholders highlighted the risks of investing in these securities. Meanwhile, law firm Quinn Emanuel Urquhart & Sullivan said it was talking to a number of Credit Suisse AT1 holders about possible legal action.
But as the European Central Bank hiked rates by 50 basis points on Thursday, the U.S. central bank was expected to press on with a quarter-point interest-rate hike despite the banking sector turmoil. "They're going to be watching signs of more instability across the financial sector very carefully," Ivascyn told Reuters. "There certainly are scenarios where they pause, it'll likely be a hawkish pause if it's a pause, but our current thinking is they go 25." Ivascyn said he expected market volatility around banks to continue over the next few months with some "isolated areas of weakness," but said the global banking sector was well capitalized compared with the 2008 global financial crisis. "There are going to be weak links within the financial sector and within the credit sector more broadly," said Ivascyn.
The Federal Reserve's prolonged period of low interest rates created many financial dislocations that are now flaring up. Case in point: Silicon Valley Bank imploded in a single day after surging interest rates caused it to sell a bond portfolio at a huge loss. The chaotic episode showed that the Fed's aggressive interest rate hiking regime could upend institutions that were once thought to be relatively stable. Since the Fed started raising interest rates in March 2021, bitcoin — formerly a highly touted inflation hedge — has plunged more than 65%. "Investors, smelling blood, then turn their attention to the next bank exposed to interest rate risk and specific credit risk, and then the next."
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailPIMCO's Libby Cantrill calls Biden's budget proposal 'DOA' to CongressLibby Cantrill, PIMCO head of public policy, joins 'The Exchange' to discuss Biden's 2024 budget plan.
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailThe market's not pricing in the fact that Fed tightening still has a way to go, says PIMCO's Erin BrownePIMCO's Erin Browne joins CNBC's 'Closing Bell' to discuss a volatile day for the markets and where she sees things headed in the second half of the year. With CNBC's Mike Santoli.
The returns show losses from Thoma Bravo and Clearlake, though the funds are new and PE is a long game. Thoma Bravo and Clearlake Capital Group, two private-equity firms that have emerged as notably active investors in recent years, have posted early losses across some of their funds, according to investment returns from a major US endowment. UTIMCO invested $51.7 million in Clearlake's seventh flagship private equity fund, known as Clearlake Capital Partners VII, which closed with some $14 billion of commitments last May. Thoma Bravo declined to comment. Meanwhile, the data show high returns from CapRock Partners, Renovus Capital Partners, Serve Capital Partners, and LFM Capital, PE firms that target middle-market companies.
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailPIMCO's Libby Cantrill: Too early to be talking about U.S. government debt defaultsLibby Cantrill, PIMCO head of public policy, joins 'Squawk Box' to discuss the debt ceiling negotiations, if the debt limit's a market event and more.
USV's 2004 fund returned more than $305 million in cash from a $22 million UTIMCO investment, with an IRR of 66%. Thrive Capital, the venture firm Joshua Kushner founded in 2009, has delivered -34% IRR on two funds from late 2021. UTIMCO's $6.7 million invested has been marked down to $4.6 million. Two funds UTIMCO invested in the VC firm Initialized at the beginning of 2022 have a -5.5% IRR. Upfront Ventures, the most prominent early-stage firm in Los Angeles, has returned only $31 million though UTIMCO invested $110 million since 2015.
They projected their key policy rate would top out at between 5.00% and 5.25% this year, up from a current 4.25%-4.50% rate. Market pricing indicates investors remain wedded to a more dovish view, with the policy rate peaking below 5% around mid-June before falling in the second half of the year. Rieder believes policymakers will raise rates by 25 basis points at the next two meetings, with further 25 basis point increases possible, depending on data. Investors in short-term options had priced in a much sharper move of about 2% going into Thursday's CPI print, according to data from market maker Optiver. Tiffany Wilding, PIMCO's North American economist, believes the Fed is likely to raise rates just two more times this year before pausing.
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailShort-term bonds singaling 'siren song of safety' for investors, says PIMCO's Jerome SchneiderJerome Schneider, PIMCO managing director, joins 'Power Lunch' to discuss bonds and yields and the rising in interest rates.
"I think that this is going to be the most contentious debt ceiling debate in memory," Winograd said. "It would suggest that there's some type of premium being allocated to bills in that space where the risk of the debt ceiling starts to grow," Norris said. Some investors also believe lawmakers will be able to reach a deal on raising the debt ceiling without severely unsettling markets. Edward Al Hussainy, senior interest rate and currency analyst at Columbia Threadneedle, thinks any debt ceiling tensions would eventually be resolved, calling the issue "a well rehearsed storyline." However, the heightened concerns about the debt ceiling are "an extra little justification on top" for the firm's positioning, Pride said.
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailChina's reopening will be a tailwind for the luxury trade, says PIMCO's Erin BrowneErin Browne, PIMCO portfolio manager, joins 'Closing Bell: Overtime' to discuss international stocks surging and expectations for the markets after a possible China reopening.
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailThere will be some headline risk, but it's much ado about nothing in the House, says PIMCO's CantrillPIMCO's Libby Cantrill joins 'Power Lunch' to discuss the impact on issues like the debt ceiling now that Kevin McCarthy has been named House Speaker.
In this videoShare Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailNet new store openings far outweigh store closures, says Kimco Realty CEOConor Flynn, Kimco Realty CEO, joins 'Power Lunch' to discuss what Kimco's tenants are telling Flynn about sales, Flynn's concerns about 2023 and more.
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailThe bipartisan $1.7 trillion omnibus spending bill is likely to pass, says PIMCO's Libby CantrillLibby Cantrill, head of public policy at PIMCO, joins 'The Exchange' to discuss the $1.7 trillion omnibus spending bill, the bipartisan support behind the bill and what new acts are included.
It will be months before we know the real impact of the EU price cap on Russian oil, PIMCO said. These include how many ships Russia can procure and how many loaders abide by the rules. A European Union ban on seaborne Russia oil imports came in alongside the price cap Monday. Meanwhile, tanker charter prices are sky-high for ships willing to transport Russian oil amid sweeping sanctions, and Middle East and Asian buyers are opportunistically snapping up aging oil tankers to ship Russian fuel. Sharenow said the third thing to watch for is when sanctions on refined Russian oil products like diesel begin in February.
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