Pacific Investment Management Co. is wagering at least $10 billion in the credit-default swaps market that U.S. corporate bonds will gain as the Federal Reserve extends unprecedented stimulus into 2014, according to traders and investors.
Pimco Unconstrained Bond Fund and other “go-anywhere” bond funds created during the 2008 credit crisis went mostly to the wrong places in 2011 after missing a rally in Treasuries and buying riskier assets that lost ground.
Pioneer Investments’ High Income Municipal Fund, the best-performer among its peers in 2010, plunged after increasing its American Airlines-related airport debt 64 percent this year, before AMR Corp. sought court protection this week.
John Hague , who helped Bill Gross build Pacific Investment Management Co. into the manager of the biggest mutual fund, is recruiting former colleagues for a firm to pursue more aggressive strategies as the bond rally fizzles.
Bill Gross , who runs the world’s biggest mutual fund , takes a seat in a conference room and makes a confession. Overlooking the ocean at the headquarters of Pacific Investment Management Co., Gross describes missteps that doomed his bond firm’s experiment with equities in the mid- 1980s.
Bill Gross’s Pimco Total Return Fund, the world’s biggest mutual fund, is trailing a low-cost Vanguard index fund this year as some of the top bond investors were blindsided by the rally in Treasuries.
Remember, back in the Paleolithic age, those “alternative music” bins they had at old record stores? They were always intriguing, but when you put the headphones on you never knew what you were going to get. The mutual funds listed in Morningstar’s Nontraditional Bond fund category are kind of like that. And, as with the record bin, sometimes you find some real gems --- and sometimes you find incomprehensible noise.