Summary of Mary Childs's The Bond King

By IRB Media

Please note: This is a companion version & not the original book.

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#1 In August 2005, Dan Ivascyn drove around with his mortgage broker to look at houses in the suburbs of Boston. They talked about the state of the market, which was not surprising to Ivascyn. It was slowing slightly, but that was normal for this time of year.

#2 One of Ivascyn’s colleagues was in Detroit, one in Miami, one in Vegas. They called their contacts at various mortgage lenders and asked to be set up with local Realtors and branch officers, so they could go on ride alongs.

#3 Ivascyn was assigned to the Housing Project by Gross, and he was excited to see how the market had changed. He was shocked by the extent of the lending malpractice.

#4 The housing market was the main reason Pimco made its billions. In 2006, their head of corporate credit predicted that if housing prices stopped rising, consumers would stop spending, which would cool the economy, which would make lending standards tighten.

• Language: English
• Publisher: IRB Media
• Release date: Mar 24, 2022
• ISBN: 9781669368434

IRB Media

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Insights on Mary Childs's The Bond King

Contents

Insights from Chapter 1

Insights from Chapter 2

Insights from Chapter 3

Insights from Chapter 4

Insights from Chapter 5

Insights from Chapter 6

Insights from Chapter 7

Insights from Chapter 8

Insights from Chapter 9

Insights from Chapter 10

Insights from Chapter 11

Insights from Chapter 12

Insights from Chapter 13

Insights from Chapter 14

Insights from Chapter 15

Insights from Chapter 16

Insights from Chapter 1

#1

In August 2005, Dan Ivascyn drove around with his mortgage broker to look at houses in the suburbs of Boston. They talked about the state of the market, which was not surprising to Ivascyn. It was slowing slightly, but that was normal for this time of year.

#2

One of Ivascyn’s colleagues was in Detroit, one in Miami, one in Vegas. They called their contacts at various mortgage lenders and asked to be set up with local Realtors and branch officers, so they could go on ride alongs.

#3

Ivascyn was assigned to the Housing Project by Gross, and he was excited to see how the market had changed. He was shocked by the extent of the lending malpractice.

#4

The housing market was the main reason Pimco made its billions. In 2006, their head of corporate credit predicted that if housing prices stopped rising, consumers would stop spending, which would cool the economy, which would make lending standards tighten.

#5

Pimco’s pessimistic stance on the housing market was natural, inherent: it was a bond investor. But now, the entire housing market was looking like a disaster-in-waiting.

#6

Bill Gross, the founder of Pimco, was a trend follower, but he had a unique ability to know when it was time to lean against that trend and take a contrary position. He was right more often than not.

#7

Pimco traders began to reduce the amount of risky bonds they bought. And Gross prepared to make his pitch to the world. He had sent out this now-legendary newsletter to clients and whoever else wanted to read it since 1978.

#8

Gross’s desk was always lit up with Bloomberg screens, and he was always on the move. He disliked small talk and would