It seems as if every fund launch in the past three months has tried to spin their product as the one that will protect investors against rising interest rates. What's going to happen now that a disappointing jobs report may delay tapering further?
Michael Aneiro doesn't answer that question but he does play the game of "What is the Fed going to do now?" by speaking to sources who have a couple of guesses.
Aneiro spoke to Adrian Miller
, fixed-income strategist at GMP Securities
, whom he quoted as saying, "This report certainly throws a monkey wrench into the market's thinking as to what the Fed may do…And now with a weak August report many of the FOMC participants who have been sitting on the fence will sound out a chorus of 'no taper.' And yet with QE providing little economic support and only serving to further distort asset prices, the cost-benefit equation still calls for a taper regardless of lackluster growth and clearly unimpressive job gains."
This news would aid Pimco's
] Bill Gross
, whose flagship fund continues to see outflows, Reuters reports
Gross victoriously tweeted, "More 'tinker than taper' in Sept. Most important: frontend yields anchored by FF rate are 2 hi based on today's report. Stay @ front."
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