Federal Reserve Bank of San Francisco President John Williams said the central bank should avoid encouraging excessive financial risk-taking as it pursues its goals of full employment and stable prices.
Bill Gross just can’t catch a break. As investors flock to funds designed to make money even if interest rates increase, Gross’s Pacific Investment Management Co. is alone among the biggest bond managers in suffering withdrawals from the strategy.
Late last Friday, billionaire Patrick Drahi put the bankers he assembled to finance a $23 billion bid for Vivendi SA’s French phone unit on the spot. He wanted to increase the cash portion of his offer by more than $2 billion, with a record amount of loans giving lenders little protection if the fortunes of the combined company diminish.