OGX Petroleo & Gas Participacoes SA’s bonds are falling like never before, a sign that investors are bracing for what would be the biggest company default in Latin America as controlling shareholder Eike Batista struggles to raise cash.
The $3.7 trillion municipal market is poised for its first two-month slide since 2011 as Bill Gross, manager of the world’s biggest bond fund, is joining individual investors in reducing holdings of local debt.
Bill Gross, manager of the world’s biggest bond fund at Pacific Investment Management Co., cut its stake in municipal debt to 4 percent of assets, the lowest allocation in nine months, the company said today.
Pacific Investment Management Co.’s 13-month-old exchange-traded fund is attracting more cash than the firm’s flagship Total Return mutual fund as investors join Bill Gross in preferring ETFs for bond investing.
Bill Gross , co-chief investment officer at Pacific Investment Management Co., recently bought $100 million of shorter maturity BP Plc bonds and some Anadarko Petroleum Corp. debt, spokesman Mark Porterfield wrote today in an e-mail.