The Fed has previously argued that the collapse in the breakeven inflation rate metric is down to a liquidity premium in the TIPS market. Indeed, a report by the Atlanta Fed in January this year said that long-run inflation expectations remain "stable and anchored."
"Either we validate the financial asset prices and growth faster, or alternatively we will slip into a global recession with financial disorder," El-Erian said
The bigger issue for financial markets is that central banks are running out of ammo, the Allianz chief economic adviser told CNBC
The 'Big Day' will certainly have a tremendous amount of impact on Indian market and here is how the market experts analyse the same.
Famed bond investor Bill Gross has sued his former employer Pacific Investment Management Co and its parent Allianz SE for USD 200 million, claiming he was wrongfully ousted by a "cabal" of executives who wanted his share of the bonus pool.
While he believes there will be pockets of value in equities, specifically Europe and Japan, Luke Spajic, EVP, Emerging Markets Portfolio Management, PIMCO, says the asset class is unlikely to achieve the kind of returns it has delivered in the past 3-5 years.
With the Fed considering a rate hike that would be the first in nine years, he said it's not evident that monetary policy is too easy because inflation is so low and full employment is only starting to emerge.
World financial markets should be somewhat relieved that Greece and its creditors reached a reforms-for-bailout deal, closing-followed market watcher Mohamed El-Erian said Monday.
The Fed is expected to adjust its economic and interest rate forecasts and possibly tweak its statement, while continuing to emphasize that rate hikes are dependent on economic data.
Pimco expects the mainland's economic growth in "the low 6 percent territory" this year, compared with official expectations for around 7 percent.
Residential mortgage-backed securities, or RMBS, were one of the main drivers of the Global Financial Crisis. Investment banks bought housing loans of increasingly questionable quality, packaged them into securities and re-sold them into the market.
Some managers hold large chunks of a company`s debt, with the report highlighting that Pimco holds more than 20 percent of Ally Financial `s total bonds outstanding and around 15 percent of Navient`s, while in emerging markets.
The best investments can be found in industries with superior growth, both near-term cyclical growth as well as long-term secular growth, and are in industries with pricing power, Pimco's Mark Kiesel said
In an interview with CNBC-TV18‘s Latha Venkatesh and Sonia Shenoy, Gordon says India ranks among key growth markets in the emerging markets space, even though investors are more inclined towards developed markets at this point.
The market will approach the upcoming elections as a binary event, says Masha Gordon, VP & Head of Emerging Market Equities, Pimco. The key thing to watch for will be the government's commitment to fiscal consolidation, she says in an interview to CNBC-TV18.
By continuing the practice of compensating for a somewhat softer short-term outlook with upward adjustments thereafter, the FOMC is sidestepping what's being called "secular stagnation" and what Pimco in 2009 labeled the "new normal"â€”namely, a prolonged period of low growth and persistently slow job creation.
The Pimco Total Return fund, which is run by renowned bond manager Bill Gross, saw its sixth consecutive month of outflows in October, as investors withdrew USD 4.4 billion of net assets, bringing total outflows to USD 33.2 billion year-to-date.
Pundits have compared the US with developing nations for years, citing issues ranging from crumbling infrastructure to healthcare to education, but in the wake of the 16-day government shutdown and near-default on the national debt, the comparison has moved away from the fringes.
The US Federal Reserve defied investor expectations on Wednesday by postponing the start of the wind down of its massive monetary stimulus, saying it wanted to wait for more evidence of solid economic growth.
"We think this week is more probable than not," El-Erian said when asked when he thought the taper policy would be announced. He said he expected a USD 10 billion to USD 15 billion reduction.
Bank of America, which rescued Countrywide at the height of the financial crisis in 2008, agreed in 2011 to settle with investors who said Countrywide had misrepresented mortgages underlying its securities.
World's largest bond house, PIMCO, braces up for euro zone debt and writes down as revival disappoints. Managers here believed that the ECB was reviewing itsrole in money markets after months of recession.
PIMCO, the world's biggest bond investor, picks the Indian rupee and offshore Chinese yuan as pure currency bets and sees value in the bonds as well as the currencies of Brazil and Mexico.
Sandip Sabharwal of Prabhudas Lilladher says Index of Industrial Production (IIP) show that the growth is bottoming out and going forward the WPI and CPI will also start moderating. So, he believes on March 19, Reserve Bank of India will cut by 25 basis points.
Due to the "dysfunction and polarization" in Washington the US economy faces a prolonged weak outlook, Pimco's Mohamed El-Erian told CNBC.