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| | The Bill Gross' Way of Making Money - MarketThoughts.com |
 | | Gross acknowledges that: "If a bank does not overdo the structural model (and they can and have), profits are almost guaranteed on a long-term basis as long as capitalism as we know it survives. |
 | | Bill Gross then highlights the important characteristic of this structural composition advantage: "In addition to their profit-generating elements, these structures share the common element of longevity, near permanence. |
 | | Gross argues that it is in PIMCO's advantage to utilize this structure, simply because of the inherent overvaluation of interest rate options, the "lottery ticket mentality," the mean reversion trade, and the fact that there are two significant parties that are, at all time, inherently long volatility. |
| www.marketthoughts.com /z20051020.html (2719 words) |
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