Pesak - With China Bill Gross is Less Relevant

Beijing

Reading Bill Gross’s latest musings makes one nostalgic for the days when words from big bond-fund managers actually mattered. We in the media like to point out that Gross runs the biggest bond fund at Pacific Investment Management Co. He did, until China created a portfolio of sorts totaling $2.5 trillion. As the assets of China’s State Administration of Foreign Exchange, or SAFE, grow, it’s making Pimco’s $239 billion Total Return Fund look like chump change. It’s a SAFE world; we just live in it. Expect SAFE’s mushrooming influence to create new jobs around the globe. Remember the Federal Reserve watchers who got so much ink in the 1980s and 1990s? Welcome to the world of the SAFE watcher.

Cracking the thinking inside the world’s biggest bond portfolio isn’t easy. How, when and where China invests its vast savings is a closely held state secret. And global markets will never be the same as debt-sellers bypass the likes of Gross and go right to the source: China. Read more here:

Pesak - With China Bill Gross is Less Relevant