[bruinbirdman]

Pimco has many, many funds. Gross is the big manager of them all?

What is Gross doing with all the other Pimco Funds that hold U.S.A. Treasuries. He mentions only Total Return.

My hunch? He sold Total Return's treasuries to the other Pimco Funds, or traded them for equities so Total Return's treasuries didn't take a hit on the open market.

yitbos

[familyop]

"My hunch? He sold Total Return's treasuries to the other Pimco Funds, or traded them for equities so Total Return's treasuries didn't take a hit on the open market."

Thank you. In the following, I also noticed the quotes of Mr. Gross, "stay clear of 'bonds in dollar denominated terms' and to be 'wary of higher interest rates going forward.'" I might look for the context of those elsewhere. Also, many other advisors and managers have been saying the same about bond risks for a long time. ...point is that the risks have been obvious for some time, and being "wary of higher interest rates" doesn't necessarily mean that there won't be another quantitative easing move by the Fed. It could happen anyway, and interest rates could still follow higher bond yields.

"No Way Out" of Debt Trap, Gross Says: U.S. Living Standards Doomed to Fall
Yahoo/Finance ^ | 3/9/11 | Stacy Curtin

[familyop]

BTW, I doubt Durden’s assumption that “Bill Gross is now convinced there will be no QE3 at all.” The risk in bonds and mortgage backed securities has been growing more apparent all along, while the Fed bought bonds.