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Jennifer Ablan

DoubleLine's Jeffrey Gundlach calls Fed's 'reversal' on rates 'stunning'

21 Mar 2019

The Federal Reserve's cautious stance on raising interest rates could backfire by creating uncertainty in the economy and hurt the U.S. central bank's credibility, Jeffrey Gundlach, chief executive of DoubleLine Capital, said on Thursday.

UPDATE 1-DoubleLine's Jeffrey Gundlach calls Fed's 'reversal' on rates 'stunning'

21 Mar 2019

March 21 The Federal Reserve's cautious stance on raising interest rates could backfire by creating uncertainty in the economy and hurt the U.S. central bank's credibility, Jeffrey Gundlach, chief executive of DoubleLine Capital, said on Thursday.

UPDATE 1-U.S.-based equity, taxable bond funds post second consecutive week of inflows

21 Mar 2019

(Adds quote, table) By Jennifer Ablan March 21 U.S.-based equity funds attracted over $3.6 billion in the week ended on Wednesday, their second straight week of inflows, according to data from Refinitiv's Lipper research service on Thursday, thanks to the Federal Reserve's dovish stance on interest rates and optimism about a U.S-China trade deal. Investors also piled into U.S.-based taxable bond funds. For a second consecutive week, they poured roughly $6.6 billion into the funds, with the bulk of the assets in higher-quality debt portfolios. U.S.-based investment-grade corporate bond funds attracted over $5.1 billion in the week, extending their weekly inflow streak since January, according to Lipper data. Investors' appetite for risk-taking came in the wake of the Fed and continued U.S.-China trade talks. Tom Roseen, head of research services at Lipper, said a pledge from Chinese Premier Li Keqiang to keep in place strong stimulus measures, as well as a commitment to striking a trade deal, pushed the S&P 500 and NASDAQ to the strongest close in five months on Thursday. "This, along with investors applauding the Federal Open Market Committee’s decision to keep rates unchanged and confirming its cautious approach to future interest rate hikes, were all key factors in keeping weekly flows and returns positive," he said. The following is a breakdown of the flows for the week, including mutual funds and ETFs: Sector Flow Chg % Assets Assets Count ($Bil) ($Bil) All Equity Funds 3.601 0.05 7,287.937 12,106 Domestic Equities 3.595 0.07 5,171.880 8,583 Non-Domestic 0.006 0.00 2,116.058 3,523 Equities All Taxable Bond 6.576 0.23 2,846.215 5,961 Funds All Money Market -35.694 -1.23 2,863.326 1,011 Funds All Municipal Bond 1.425 0.32 449.072 1,412 Funds (Reporting by Jennifer Ablan; Editing by Susan Thomas and Dan Grebler)

Pimco says some staff used 'legitimate' services of college scandal mastermind

15 Mar 2019

NEW YORK The figure at the centre of the U.S. college cheating scandal spoke twice in the past decade at events hosted by Pacific Investment Management Co (Pimco), one of the world's largest asset managers whose former chief executive is ensnared in the fraud, the company said on Friday.

UPDATE 1-U.S. investment-grade corporate bond funds enjoy 7th week of inflows -Lipper

14 Mar 2019

(Adds quote from senior research analyst, table) By Jennifer Ablan March 14 U.S.-based investment-grade corporate bond funds pulled in more than $3.29 billion in their seventh straight week of inflows, Lipper research service said on Thursday, as the Federal Reserve is expected to affirm its patience in considering interest rate hikes. Other credit market sectors also enjoyed inflows in the week ended March 13, according to the Refinitiv unit. U.S.-based municipal debt funds attracted more than $1.2 billion, for a 10th consecutive week of inflows. Taxable bond mutual funds brought in over $585 million for their ninth straight week of net new money. "Money started to flow into (the corporate bond) asset class when the Federal Reserve took their foot off the gas at the start of the year in regards to their interest rate hike and balance sheet reduction policies," said Pat Keon, senior research analyst at Lipper. The Federal Open Market Committee meeting on March 19-20 is fueling demand for corporate bonds, he added. Fed Chairman Jerome Powell and the Fed's policy-setting committee are expected to reiterate that they are in no hurry to adjust interest rates as growth slows and inflation stays muted. U.S. equity mutual funds suffered net outflows of $3.4 billion, Lipper said, noting this week marked the category's fourth straight week of cash withdrawals. However, U.S. equity mutual funds are still up for the year at $5 billion. "That is a significant rebound from the $102 billion in net outflows during the fourth quarter 2018," Keon said. Money market funds had net outflows of $2.2 billion, but "these results were somewhat muted when compared to the usual volatility we see from this group," Keon added. The following is a breakdown of the flows for the week, including mutual funds and ETFs: Sector Flow Chg Pct of Assets Count ($ blns) Assets ($ blns) All Equity Funds 0.891 0.01 7,238.087 12,108 Domestic Equities 1.994 0.04 5,152.584 8,585 Non-Domestic Equities -1.104 -0.05 2,085.503 3,523 All Taxable Bond Funds 2.623 0.09 2,828.980 5,968 All Money Market Funds -2.210 -0.08 2,886.622 1,008 All Municipal Bond 1.646 0.37 446.918 1,410 Funds (Reporting by Jennifer Ablan; Editing by Richard Chang)

Fed could soon announce plan to stop shrinking balance sheet: Pimco

14 Mar 2019

The U.S. Federal Reserve could announce plans to stop shrinking its bond stockpile as early as next week and as late as June, Pacific Investment Management Co (Pimco), which oversees more than $1.66 trillion in assets, said on Thursday.

RPT-DoubleLine's Jeffrey Gundlach calls Modern Monetary Theory a 'crackpot' idea

13 Mar 2019

March 12 Jeffrey Gundlach, the chief executive of DoubleLine Capital and Wall Street's Bond King, called the increasingly popular Modern Monetary Theory backed by progressives a "crackpot" idea.

DoubleLine's Jeffrey Gundlach calls Modern Monetary Theory a 'crackpot' idea

12 Mar 2019

Jeffrey Gundlach, the chief executive of DoubleLine Capital and Wall Street's Bond King, called the increasingly popular Modern Monetary Theory backed by progressives a "crackpot" idea.

UPDATE 1-U.S.-based equity funds post $6.97 bln of cash withdrawals in latest week

07 Mar 2019

(Adds quotes from senior research analyst at Lipper) By Jennifer Ablan March 7 Investors' appetite for risk-taking took a breather in the latest week, as U.S.-based equity funds posted $6.97 billion of cash withdrawals in the week ended Wednesday, according to data from Refinitiv's Lipper research service. Additionally, U.S.-based high-yield junk bond funds - which move in sympathy with stocks - posted $1.9 billion of outflows during the same period, following five straight weeks of inflows, Lipper said. Investors moved money into higher-quality asset classes. U.S.-based money market funds attracted roughly $28 billion in the week ended Wednesday, their second consecutive week of inflows, according to Lipper. U.S.-based investment-grade corporate bond funds attracted $2 billion in the week ended Wednesday, their sixth consecutive week of inflows, Lipper added. Pat Keon, senior research analyst at Lipper, said taxable bond funds have bounced back in the first quarter with net inflows of $47 billion - after having their worst quarterly net outflows in their history in the fourth quarter of 2018, suffering net withdrawals of $135.4 billion. "Investment-grade corporate bond funds have been the biggest contributor to this turnaround with net inflows of $20 billion," Keon said. "The change in investor sentiment was initiated and driven by the Federal Reserve softening its stance on both interest rate increases and the reduction of its balance sheet." In early January, Federal Reserve Chairman Jerome Powell stated the Fed would be patient on its interest-rate policy and would need to see a reason to raise rates before doing so. "This contradicted the Fed’s forecast in December, which called for two rate hikes in 2019," Keon said. "The Fed also announced it would stop selling the bonds it has on its balance sheet relatively soon." Keon noted that in the December meeting Powell stated the balance sheet reduction program was on auto-pilot and the Fed was not reviewing it for any changes. "These bonds were acquired by the Fed as part of the quantitative easing program, following the global financial crisis in 2008," Keon said. The following is a breakdown of the flows for the week, including mutual funds and ETFs: Sector Flow Chg % Assets Assets Count ($Bil) ($Bil) All Equity Funds -6.966 -0.10 7,164.363 12,105 Domestic Equities -4.665 -0.09 5,083.385 8,584 Non-Domestic -2.301 -0.11 2,080.978 3,521 Equities All Taxable Bond -1.488 -0.05 2,814.164 5,971 Funds All Money Market 27.957 0.95 2,982.093 1,011 Funds All Municipal Bond 0.798 0.18 444.395 1,411 Funds (Reporting by Jennifer Ablan; Editing by Lisa Shumaker and Phil Berlowitz)

RPT-El-Erian: Europe's slowdown is worse than investors imagined

05 Mar 2019

NEW YORK, March 4 The European economy is cooling more than many investors believe, Mohamed El-Erian, chief economic adviser for Allianz SE, said on Monday, warning that the slowdown poses the biggest risk to the market.

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