3) Bets placed by Pimco in mortgage securities in 2009 and 2012 - when the Fed was buying heavily -

The head of Pimco, Bill Gross, known as Mr. Bond - yes, pun in English with reference to James Bond Goldfinger - is perhaps the world's largest speculator in the government securities market. Originally, he was a player (winner) of speculative bets at the gaming tables of Las Vegas. It was only a step change casinos ...
Carrick Mollenkamp and Cezary media mail Podkul (Reuters cited Value, media mail 9/30/13) reported about that, during the second media mail half of 2011, financial markets discussed whether the Federal Reserve (Fed, the US central bank) embark on a third round bonus massive purchases, as it became known as "quantitative easing" (QE, its acronym in English), to support media mail an anemic economy. Pacific Investment Management Co. (Pimco) chose not to wait.
The giant fund manager, led by co-founder Bill Gross, began buying tens of billions of dollars in mortgage-backed securities media mail (MBS) backed by Fannie media mail Mae and Freddie Mac, supported by the federal government. In the third quarter of 2011, the major fund Pimco, the Total Return Fund, the largest mutual fund in the world, doubled their holdings in these securities to $ 80 billion, according to a survey of Reuters.
While Pimco accumulated positions, the Fed, in an unexpected initiative and well before any decision on quantitative easing, said it would start buying more of the same type of debt. The US central bank would buy up to $ 30 billion of MBS securities per month, reinvesting income from previous media mail acquisitions. Prices rose.
Finally, in September 2012, the Fed announced a third round of monetary stimulus, dubbed "QE3". To continue to support the US housing market, he would buy even more MBS securities. The Pimco Total Return media mail Fund received billions of dollars in the most gains.
1) In December 2008, the Fed hired Pimco, along with three other major Wall Street institutions to implement huge purchases of MBS to maintain low interest rates and stimulate the US economy;
3) Bets placed by Pimco in mortgage securities in 2009 and 2012 - when the Fed was buying heavily - provided the firm and the Total Return Fund investors a gain of US $ 10 billion, excluding the total flows of net investments, estimates of Reuters.
There is no evidence of illegality media mail or impropriety in the decisions of Pimco. This, in turn, says that kept its employees who were helping the Fed at a distance from those who were investing for their funds, and that its investment in bond buying was designed before the Fed's program. The BC says implemented and imposed strict controls on deals made by firms. media mail But Pimco's ability to improve their returns following the Fed illustrates media mail how the easy money policy of the central bank produced colossal winners. One being, Pimco benefited too from the same Fed policy she helped implement.
Gross and other executives of Pimco credited his success to transparency of the Fed to announce his intentions and his own experience of buying assets when they are cheap and analyzing the economy as a whole. "Anticipate and then buy what they buy, just as before," said Gross, in January 2009, for the reporting of monthly bills to customers.
The analysis by the Reuters quarterly positions media mail of Pimco Total Return Fund and the Fed's actions suggest that the experience of Pimco was fueled by other factors: its size, the choice by the Fed of an intervention program tailored to be explored by Pimco and a close relationship with the Fed.
Pimco hired former Fed Chairman Alan Greenspan as a consultant in 2007. The right arm of Gross, Mohamed El-Erian, part of an advisory committee of the most important media mail agency of the US central bank, the New York Fed. The overall strategy consultant at Pimco, the economist Richard Clarida, knows the Fed chairman, Ben Bernanke, three decades ago and reportedly was considered for a seat on the governing board of the Fed in 2011. [Conflict of interest ?! Inside information ?! What is this, unbelieving people? :)]
Pimco was one of four firms that the central bank hired to help you buy MBS securities in 2009, the first phase of quantitative easing, called "QE1". Basically, these firms collaborated with the Fed in the development of the program booklet. The goal was to stimulate lending and spending, reducing interest rates through massive purchases of bonds, flooding media mail the money market.
Two of the other three institutions that helped the Fed - Goal