Companies typically borrow money at less than their return on equity and therefore compound their return at the expense of lenders.
Bill GrossWhen the tide goes out, you get to see who's swimming naked. PIMCO has had its bathing suit on for a long time
Bill GrossWhen does money run out of time? The countdown begins when investable assets pose too much risk for too little return; when lenders desert credit markets for other alternatives such as cash or real assets.
Bill GrossBoth from the standpoint of stocks and bonds, an investor wants to go where the growth is.
Bill Gross