Self Serving Bullshit
Wanna know why you shouldn't believe everything you read? Look at this.
Agency Debt Not Linked to Underlying Value, El-Erian Says
By Pimm Fox and Sandra Hernandez
July 18 (Bloomberg) -- Prices of debt issued by mortgage- finance companies Fannie Mae and Freddie Mac don't reflect their true value, said Mohamed El-Erian, the co-chief investment officer of Pacific Investment Management Co.
``If you look at the bonds, if you look at the preferreds, you're seeing prices that are not linked to the underlying value,'' El-Erian said in a Bloomberg Television interview. ``When the tide goes out all the boats go down. The senior parts of the capital structures in many industries are being valued at levels that don't make sense at this point.''
Mortgage securities made up 61 percent of Pimco's $128.8 billion Total Return Fund as of June 30, up from 53 percent a year earlier, according to the Newport Beach, California-based firm's Web site. The fund is run by Pimco's co-chief investment officer Bill Gross.
Pimco, a unit of Munich-based Allianz SE, has about $800 billion of assets under management.
Well, now, what the fuck do you expect the guy to say? "Oh yeah, that 80 Billion we own in Fannie and Freddie paper? Total shit - junk, actually. I wouldn't wipe my ass with it."
OF COURSE he is going to say it's undervalued. And why? Probably because he wants to sell it, and by talking it up today he can get better prices for it tomorrow!
I have no proof, but PIMCO is famous for doing this shit. Let's see what happens to spreads on Monday.
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Self Serving Bullshit
2 comments:
Wheres the surf reports? sounds like you have to hit the water soon my friend...
That's not how I read it. He used "Greenspeak" - my name for the way Greenspan could say one thing and mean the opposite.
Don't forget that piece of garbage is working for PIMPco (as I call it) now.
El-Erian is right that prices aren't linked to the "underlying value" - that's because THERE IS NO Fuc&ing UNDERLYING VALUE, not in a collapsing market! You can't determine "real" value yet, we're not even close.
Thus, these bonds are STILL overpriced! Since these worthless fuc&ing bonds still still have bids, they are at prices that "don't make sense" - at least that's what I know the TRUTH is.
Funny thing is he didn't actually say undervalued, but it was obviously implied because he's from PIMPco, the scumbag company they are.
I think they are scum over there. Bill Gross and Paul McCulley can both eat my $hit!
``If you look at the bonds, if you look at the preferreds, you're seeing prices that are not linked to the underlying value,'' El-Erian said in a Bloomberg Television interview. ``When the tide goes out all the boats go down. The senior parts of the capital structures in many industries are being valued at levels that don't make sense at this point.''
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