Wednesday, 11 March 2009

Pimco's Gross Boosts Holdings of Government Debt to Highest in Two Years

Bill Gross, manager of the world's largest bond fund, the $800+ billion Pacific Investment Management Co., boosted its holdings of government bonds to the equivalent of 15 percent of its Total Return Fund -- the largest percentage since 2007. The TRF has a size of about $140 billion. A sign of the times -- suggar daddy offers a safe haven ... hopefully not for long.

On the other hand, the strategy might suggest the California-based fund is also concerned over the return of inflation in a few months. Good news? definitely -- after all the recession being endured by the U.S. shouldn't turn into depression, which at this very moment can only be a good news.
Government debt offers investors protection against accelerating inflation.

By the way, we still don't have a picture of Bill Gross.
Apologies.

Click here to read Bloomberg News story on Gross.

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