Bill Gross and Pimco, one the world's largest bond investors, are betting on low volatility moving forward

Jay Soloff

Argonath Financial

Bill Gross and Pimco, one the world's largest bond investors, are betting on low volatility moving forward. The company is wagering on the new neutral which relies on lower interest rates and low but steady global growth. Pimco's fund managers are actively selling options and taking large positions in interest-rate swaps in an effort to profit in a low volatility environment. As long as the Fed continues to hold the line, overall credit risk should remain extremely low and there will likely be a cap on volatility. After all, as low as the VIX has been, it's still running significant higher than realized volatility. Given how little the US markets are reacting to the situation in Iraq, it looks like Gross and Pimco may be on to something. (VIEW LINK)


Jay Soloff
Jay Soloff
Research Analyst
Argonath Financial

I'm an investments analyst for a US-based independent investment research firm. My focus is on economics, options, and all types of stocks, but especially tech, Internet, and renewable energy companies. I have experience as a options market...

Expertise

No areas of expertise

I would like to

Only to be used for sending genuine email enquiries to the Contributor. Livewire Markets Pty Ltd reserves its right to take any legal or other appropriate action in relation to misuse of this service.

Personal Information Collection Statement
Your personal information will be passed to the Contributor and/or its authorised service provider to assist the Contributor to contact you about your investment enquiry. They are required not to use your information for any other purpose. Our privacy policy explains how we store personal information and how you may access, correct or complain about the handling of personal information.

Comments

Sign In or Join Free to comment