Magorn: Debeo Summa Credo: Well, didn't everyone else know that the fed was buying MBS? Couldn't any other hedge fund or bank or mutual fund have bought such securities under the belief that the fed's purchases would drive up the price? And if the fed saw that private investors were bringing adequate demand to the market, couldn't they have pulled back and bought some other asset class instead.Seems like a "meh" unless you are accusing PIMCO of using inside information to front run fed purchases of specific bond issues.here's the Key, in 2009 the Fed announced it's quantitive easing program, which, as intended drove up the price of MBS's sharply. In late 2008 PIMCO went very big on buying those MBS securities coounter-to the market at the time which was dropping them like hot rocks (which is why the Fed did what they did, something unprecedented in its history) Slightly earlier in 2008, another division of PIMCO was hired by the Fed to map out it MBS buying strategy which was top secret at the time. PIMCO SWEARS there was a "chinese wall" between thier brokers and the mutal fund folk, but the $10 billion profit betting contra-market by Pimco stongly suggests otherwise
Kiler: Debeo Summa Credo: Seems like a "meh" unless you are accusing PIMCO of using inside information to front run fed purchases of specific bond issues.That's exactly what they're implying.
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