Here’s something to chew on this morning (from Minyanville on Wednesday):

Yesterday afternoon on CNBC Bill Gross, the Co-chief Investment Officer and Founder of PIMCO, was asked a question from Dylan Rattigan: “What position do you feel the most confidence in?”

Gross responded:

“Well, the one we are most confident of is the one which we label ‘the Fed’s umbrella’. We want to buy securities that are safely protected by the Fed’s umbrella – that’s banks and that is investment banks that have come now under the “guarantee”- so to speak - of the Fed window. Primary dealer and bank credit securities, loans and hybrid preferred’s yielding 8% plus are our favorite types of security in this type of environment. Certainly not 2-3% yield Treasury securities.”

Source:

“Under the Fed Umbrella”
Minyan Peter
Minyanville, June 4, 2008

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