Pimcos ETF Probe Is Said Separate From Broader SEC Sweep

The transcript discusses the SEC's investigation into PIMCO's bond pricing practices, focusing on the use of pricing services and its impact on the ETF's NAV. It highlights the impressive performance of PIMCO's ETF since its launch in 2012, raising questions about the role of pricing in its success. The discussion also covers market liquidity, pricing strategies, and the broader implications for the ETF industry, with insights from Matt Levine's defense of PIMCO's approach.

What is the SEC investigating about PIMCO's bond pricing?

• PIMCO's use of outdated pricing models

• PIMCO's investment in high-risk bonds

• PIMCO's potential manipulation of bond prices through a pricing service

• PIMCO's failure to disclose bond holdings

How did the PIMCO ETF perform in its first eight months?

• It underperformed compared to its peers

• It matched the performance of the S&P

• It returned 12%, significantly outperforming its peers

• It had a negative return

What is a potential reason for the PIMCO ETF's initial success?

• A sudden increase in bond market liquidity

• A decrease in interest rates

• The use of a pricing strategy that marked up bond prices

• A large initial investment by PIMCO

What does Matt Levine suggest about the market price for infrequently traded assets?

• It is always accurate and reliable

• It is irrelevant to ETF performance

• It is a bit of a fiction

• It is determined by government regulations

Why is Bill Gross's ETF significant in the actively managed ETF space?

• It represents a small fraction of fixed income ETF assets

• It has never been investigated by the SEC

• It is the largest ETF in the world

• It is considered a pioneer in actively managed ETFs