Bill Gross is continuing to lighten his load of mortgage and U.S. government debt.

The Fed's announcement of a plan to buy up to $40 billion in mortgages securities a month may have been a gift from the heavens for some bond funds, but Reuters correspondent Sam Forgione reports that Gross has slightly trimmed the mortgage holdings in his Total Return Fund once more.

Gross cut his mortgage holdings to 49 percent in September from 50 percent the month before, Forgione writes. And after cutting back from 33 percent invested Treasury bonds to 21 percent this summer, Gross's fund has dropped down to 20 on the heels of the Fed's announcement.

As you may be aware, the man is concerned about what he characterizes as unsustainable government debt. In his October letter, Gross said that America "will begin to resemble Greece before the turn of the next decade" unless revenues are raised or debt cut.

The Total Return Fund is up 9.27 percent this year, in the top 5 percent of its class, and it attracted $6.25 billion last quarter, most among bond funds, reports Forgione.  

Edited by: Chris Cumming


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