• 13 May 2014 at 3:11 PM

Bill Gross Not Yet Ready To Let A Certain Someone Go

Last month, Pimco deputy chief investment officer Scott Mather announced that the “new normal,” a phrase created by Pimco founder Bill Gross and former CEO Mohamed El-Erian, was no longer. “Our view is that what you’ll see in next the few years is we’re going to head back to a new destination,” Maher said in an interview with Bloomberg Surveillance. It was assumed that Maher made the proclamation with the full backing of Gross, and, what’s more, that it came about as a result of Gross’s feelings for his collaborator El-Erian, who quit in February and who Gross, after a series of outbursts regarding the departure, was ready to declare dead to him, along with the phrase. Apparently, though, Maher spoke too soon.

Pimco’s latest thesis maintains the expectations for subpar returns outlined in the “new normal,” although the outlook is more stable compared with what Pimco forecast five years ago. Gross said the “new neutral” focuses more on the outlook for low benchmark interest rates. “We’re the owner of new normal; we’re not giving it up,” Gross said today in a telephone interview. “The new normal lives, so to speak.”

Does Gross hate El-Erian with every fiber of his being? Yes. Did El-Erian rip Gross’s heart out? Indeed. But deep down inside, did Secretariat ever stop loving Mo? The answer is clearly no. Even if hearing the phrase is a painful reminder of what once was, banishing it from the halls of Pimco would be to officially say good-bye. To let go. To find a new Mo. And someone’s not ready to do that. After all, his iPhone still autofills ‘New Normal’ after he taps the letter ‘n’. If it hasn’t moved on, why should he?

Pimco ‘New Normal’ Is Now ‘New Neutral’ After El-Erian Exit [Bloomberg]

Earlier: Pimco Conveniently Phasing Out Phrase Co-Created With You Know Who

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Comments (5)

  1. Posted by Chicksie Dick | May 13, 2014 at 4:49 PM

    Not ready to make nice yet.

  2. Posted by Bandersnatch | May 14, 2014 at 10:19 AM

    Mo must dread Saturday nights and the the calls from a drunk Secretariat: "I just wanna know what happened between us … we were so great together …we should give it another try … "

  3. Posted by John | May 14, 2014 at 2:42 PM

    Is this supposed to be journalism? This sounds like something a 14 year old girl would write.

  4. Posted by Abushanabkizb | May 16, 2014 at 8:11 PM

    Mohamed simply betrayed Bill and Pimco and should be sued for all the harm he caused them and Allianz, by the way he resigned so abruptly and then undermined Bill and therefore Pimco/Allianz. This man has no loyalty but to himself (though he's his own worst enemy) and the way he abandoned Bill/Pimco/Allianz twice, the Harvard Endowment and others should be a wake up call for anyone out there thinking of hiring him in a key person position. A bad news guy.

  5. Posted by Abuteezhamra | May 20, 2014 at 7:03 PM

    Actually it's Bill, Pimco and Allianz who are moving on, while El-Erian keeps hanging on (still refers to himself as Pimco's former this and that, when Bill's co-founders never stooped so low). Anyway let's show El-Erian some empathy (he's been shown the door at Pimco already) now that he's no longer riding Bill's and Pimco's coat tails, and people are starting to ignore him as he inevitably fades into oblivion (which must be killing him inside given his insanely oversized ego and obvious insecurities).