Financial journalist and co-host of NPR’s Planet Money, Mary Childs, bond kinga biography of industry titan, billionaire bond trader Bill Gross.
Bill co-founded Pacific Investment Management Co (Pimco) in 1974, where he became the world’s largest fixed income trader and revolutionized the market. Bill, who heads the company’s total his returns his fund, served as managing his director and chief investment officer until his shock retirement in 2014.
Bill is widely regarded as a market legend, but on the surface, little did he know about his rise to fame and fortune. The main reason I wanted to invite Mary to the podcast was because she spent countless hours conducting her research and interviews to produce her book.
In this episode, Mary talks about Bill’s life and some of the standout deals that helped put Pimco on the map, including his highly controversial positions at Freddie Mac and Fannie Mae during the 2008 financial crisis. I will explain.
Topic and Timestamp:
Note: Exact time depends on current ad.
- 01:50 – Bill’s desire for fame, a primer on the bond market (and why not boring!)
- 14:00 – Bond splits, structural alpha, 1983 Ginnie Mae trade, reputation.
- 29:10 – Pimco’s place in the GFC, Freddie Mac and Fannie Mae controversy.
- 36:05 – Losing the crown, changing Bill’s public opinion, Pimco’s shock departure.
- 43:15 – In summary, how did Pimco become a powerhouse?