Bill Gross doesn't follow the pack. He leads it, or at least ignores it.
That's the only explanation behind his latest decision to raise his exposure to interest rate risk after
losing his bet on TIPS, with outflows totaling almost $10 billion last month. The
WSJ reporter Min Zeng writes that mortgage-based-securities were raised to 36 percent in late June from 34 percent in May at
Pimco [
profile]
Total Return Fund.
U.S. government related holdings, such as Treasury bonds, Treasury Inflation Protection Securities, agency debt and derivatives, remained at 38 percent, Zeng writes. Gross did reduce exposure in non-U.S. developed nations from 7 percent to 5 percent.
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Edited by:
Casey Quinlan
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