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Bill Gross to clear his flagship fund of U.S debt!

The Total Return Fund said not to hold any government paper since the end of February...

Article also available in : English | français

Bill Gross, head of PIMCO one of the world’s largest bonds fund, is said to have brought his Treasury exposure to 0%, reports the Zero hedge website.

Pimco’s spokesman in NY Michael Reid made no comment on this statement. The website however, did not reveal its sources.

Last January, Gross announced that the Total Return Fund, that manages more than 237 billion dollars had reduced its exposure to U.S debt to 12% of its assets. Being flat on the U.S debt is not a first for the fund, as in January 2009, a similar move had been made regarding U.S government bonds.

In a recent declaration, Bill Gross judged the Treasury Bills yields to be insufficient to sustain demand on the U.S public debt, while the fed’s second quantitative easing (qe2) was coming to an end.

According to PIMCO, the concerned U.S. government related papers may include both conventional and inflation linked Treasury bonds, federal agency debt, interest rate derivatives, futures and options of Treasury, as well as Federal Deposit Insurance Corp. backed bank debt.

Next Finance , March 2011

Article also available in : English | français

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