MutualFundWire.com
The insiders' edge for 40 Act industry executives!
an InvestmentWires' Publication
an InvestmentWires' Publication
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|
MutualFundWire.com
The insiders' edge for 40 Act industry executives!
an InvestmentWires' Publication |
|
Tuesday, July 5, 2011 Pimco Wins a Multi-Part Inflation Bet Fundsters interested in fixed income trading and in short- and long-term predictions about inflation may want to take a look at today's Wall Street Journal. Gregory Zuckmerman highlights an inflation trade that netted Pimco [see profile] about $50 million while Morgan Stanley lost out. According to the WSJ, a Pimco team bought "several billion dollars" of 30-year TIPS (treasury inflation protected securities), effectively betting on higher long-term inflation. Yet the Morgan Stanley interest rate division, led by Goldman Sachs alum Edward Hadden, shorted 30-year TIPS and bought non-inflation-protected 30-year Treasurys to bet against long-term inflation, while also buying 5-year TIPS and shorting 5-year non-inflation-protected Treasurys to bet on higher short-term inflation. Printed from: MFWire.com/story.asp?s=37229 Copyright 2011, InvestmentWires, Inc. All Rights Reserved |