MutualFundWire.com
The insiders' edge for 40 Act industry executives!
an InvestmentWires' Publication
an InvestmentWires' Publication
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MutualFundWire.com
The insiders' edge for 40 Act industry executives!
an InvestmentWires' Publication |
|
Monday, April 11, 2011 Gross is Bearish on U.S. Government Bonds Bond giant Pimco [see profile] is cutting and even shorting U.S. government-related bonds showing no confidence in the recovery of the asset class in the foreseeable future, the Wall Street Journal reports. In his April market outlook, Gross reportedly said he's been selling Treasuries because they have little value given the nation's mounting debt burden. In addition to the $9.1 trillion in federal debt seen on the books, Gross is also worried about non-discretionary and entitlement spending including Medicare, Medicaid and Social Security. "Unless entitlements are substantially reformed, I am confident that this country will default on its debt," he wrote. Instead, Gross has reportedly been ramping up his cash polsition to 31 percent by the end of March, up from 23 percent in February and 5 percent in January in Pimco's $235.98 billion Total Return Fund. Printed from: MFWire.com/story.asp?s=36509 Copyright 2011, InvestmentWires, Inc. All Rights Reserved |