Bill Gross Gets ‘New Neutral’ Endorsement on First Day at Janus

On his first full business day at Janus Capital Group Inc., Bill Gross yesterday got a blue-chip endorsement of his economic outlook from a group of former central bankers. Gross spent his final months atop Pacific Investment Management Co. betting on a "new neutral" rate of interest in which weak economic growth and high debt leave central banks likely to keep interest rates below their pre-financial crisis peaks. The strategy wasn't enough to stop redemptions from the Newport Beach, California-based Pimco and it also ran into criticism from rival money managers at Goldman Sachs Group Inc. and BlackRock Inc. It nevertheless found support yesterday in a report published by the International Center for Monetary and Banking Studies written by Vincent Reinhart of Morgan Stanley, Lucrezia Reichlin of London Business School, Luigi Buttiglione of Brevan Howard Capital Management LP and Philip Lane of Trinity College in Dublin.



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