Hedge-fund firms Saba Capital Management LP and Pine River Capital Management are piling into closed-end debt funds with share prices that plunged below the value of their assets by the most since the credit crisis.
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.
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.
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.
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.