Pacific Investment Management Co.’s William Gross, the billionaire who runs the world’s largest mutual fund, is re-jiggering family investments in Pimco bond funds that have been beaten down by rising interest rates.
Jeffrey Gundlach, manager of the top-performing DoubleLine Total Return Bond Fund, raised $2.3 billion for a closed-end bond fund in an initial public offering that ranks among the five biggest in the industry.
Bill Gross , the co-chief investment officer of Pacific Investment Management Co., spent $4.4 million of his own money this month to purchase shares of five municipal-bond funds run by his firm after tax-exempt debt tumbled.
Tax-exempt bonds are yielding more than Treasuries for the first time since the financial crisis, a relationship that history shows doesn’t last, especially as the Federal Reserve kindles inflation expectations.
Junk-bond yields have fallen so far that the world’s biggest debt investors are turning to borrowed money to juice returns, a practice that magnified losses during the worst financial crisis since the Great Depression.