Your Gateway to Financial Literacy
PIMCO’s Origin Story PIMCO, founded in 1971 by Bill Gross, Jim Muzzy, and Bill Podlich, began as a small investment company in Newport Beach, California, with just $12 million in assets under management. The trio shared a belief that bonds should not be considered static but instead actively traded to
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Introduction to Original Issue Discounts (OIDs) Original Issue Discounts (OIDs) represent the difference between a bond’s face value and its initial offering price. These discounts play a crucial role in attracting buyers to purchase new bonds, allowing issuers to raise capital for their businesses at lower costs. However, unlike coupon
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Introduction to Negative Convexity Negative convexity is a critical concept for fixed income investors and risk managers as it helps them gauge the price behavior of bonds under different interest rate scenarios. Understanding this property can improve portfolio management, aid in risk assessment, and lead to better investment decisions. This
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