It’s already begun.
Investors are yanking cash out of PIMCO after the shock departure of Chief Investment Officer Bill Gross, who left on Friday to go to Janus.
Gregory Zuckerman at WSJ reports:
Pacific Investment Management Co. suffered roughly $US10 billion of withdrawals following the Friday departure of co-founder Bill Gross, a person familiar with the matter said, a sign of how quickly Mr. Gross’s surprise move is reshaping the bond-investing landscape.
PIMCO has about $US2 trillion in assets under management, so $US10 billion for them is couch change. But you can be sure that outflows — which have already been a problem for the firm — will quicken in the coming days and weeks.
For some good analysis of the thinking investment managers are going through, as they consider pulling cash out of PIMCO, read Josh Brown’s analysis here.
NOW WATCH: Money & Markets videos
Business Insider Emails & Alerts
Site highlights each day to your inbox.