Someone At PIMCO Can Now Add ‘Photoshopped Images Of Bill Gross Looking In A Mirror With His Tie Undone For The Company Newsletter’ To Their RésuméBy Bess Levin
“It doesn’t take very long. I take my cup of coffee, one or two cups, and get my brain working and then something comes to mind that listeners might take advantage of or be respectful of. Do I tweet what is exactly on my mind? In some cases because of the 140 letter limit, it’s hard to get across the message. But yes, I enjoy tweeting.” [Bloomberg TV]
Bill Gross, who runs the world’s largest mutual fund at Pacific Investment Management Co., received a U.S. patent for the methodology behind a global bond index that weighs countries by the size of their economy rather than their indebtedness. … By focusing on gross domestic product, the index avoids concentrating on countries saddled with debt and offers a greater weighting for developing markets.
So hey that’s just super. I’m actually envious; I used to work in a field that back in the day would occasionally patent derivative trades for their tax/etc. advantages, but then the IRS/etc. realized that they could just look at the patents to see who was cheating – sorry, being aggressive – on their taxes. That’s kind of a hard sell to clients – “every purchase comes with a painful audit at no extra charge!” – and the days of patenting derivatives are kind of over.1
But patented indices lacks that you’ll-be-horribly-audited factor, and indices are a hotly competitive business for some reason. I’ve never entirely understood the business of licensing indices – it’s, like, licensing averages! I can average prices! I’ll sell you a spreadsheet for ten bucks! – but some of the appeal is obvious.2 Or at least more obvious post-Liborgate. An index maintained by a third party and licensed for profit is less likely to be manipulated, since the third party’s incentives are (1) to make the index reliable so they can profit from selling it to everyone and (2) specifically not to make it unreliable so they can profit from manipulating it, since they’re in the index business rather than the trading-the-thing-referencing-it business.3
That’s not Bill Gross’s business, though: Read more »
“It’s sort of like a half-nelson or even a full-nelson in wrestling terms being applied to bondholders under Greek law. They’re all being forced to go along.” [Bloomberg]
Has there ever been a person in your life who in hindsight you never adequately cherished ’til he/she was gone? Who you would have treated better if you’d known that that final day together would be your last? Who you would have begged to stay? Who you assumed would return to you eventually but as the weeks, months, and years crept on you were faced with the hard realization that the next and only time you’d see them would be in your dreams, because they were never coming back? Whose permanent absence, once finally accepted, hit you like a piano pushed from the window of the top floor of a hedge fund manager’s house by a surly pet pig? Then you know how people involved with Bill Gross’s Mustache feel today. Once a daily presence on the PIMCO manager’s face, the BGM went away for a while but it was assumed not for good because how could that be? Why would that be? It didn’t seem possible. And then this happened:
Bloomberg’s Tom Keene: When does the mustache come back?
Gross: Never. My wife has finally adjusted, so it’s not coming back.
If you never got to say a proper good-bye, if you would have done things differently, if you feel like the wind’s been knocked out of you, if you can’t bear the thought of being alone tonight, join us as we light a candle in memoriam. Read more »