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Last week, Bill Gross purchased muni bond closed-end funds. This week, he continued the buying spree, and bought more muni funds, but also diversified by buying high yield, corporate and floating rate bond funds. There was heavy buying on Monday and Tuesday, but I did not yet see any SEC filings for Wednesday, so this round of purchases may be completed.

The total buys since December 8 total over $18.5 million. Mr. Gross is a billionaire, but much of his net worth is likely tied up in company stock and other illiquid assets, so an $18 million purchase using liquid discretionary funds seems significant.

Since the original purchases last week, some of the muni bond closed-end funds have appreciated about 4%. Just today, the NMUNP index (Nuveen Municipal Closed-End Fund Exchange Traded Index) was up 2.87%. It has recovered part of its losses, but is still down about 10% from the highs in September.

Many muni bond closed-end funds yield around 7% on a tax exempt basis, which is equivalent to over 10% for those in the top income tax bracket.

Here is a table showing the reported Bill Gross purchases since November 8:

Trade Date Shares Price $ Invested
12/08/2010 12,096 PMX 9.75 $117,936.00 Muni
9,900 PCQ 11.65 $115,335.00 Muni
19,056 PCK 8.2741 $157,671.25 Muni
12/09/2010 36,225 PCQ 11.5997 $420,199.13 Muni
50,000 PCK 8.2465 $412,325.00 Muni
23,333 PMF 12.048 $281,115.98 Muni
42,864 PZC 8.65 $370,773.60 Muni
88,156 PMX 9.8493 $868,274.89 Muni
12/10/2010 19,168 PCQ 11.5743 $221,856.18 Muni
48,816 PCK 8.1387 $397,298.78 Muni
32,002 PMF 12.0397 $385,294.48 Muni
19,400 PZC 8.5211 $165,309.34 Muni
50,000 PMX 9.7494 $487,470.00 Muni
12/13/2010 50,000 PCQ 11.5886 $579,430.00 Muni
14,439 PMF 11.95 $172,546.05 Muni
6,632 PZC 8.47 $56,173.04 Muni
14,500 PCK 8.0723 $117,048.35 Muni
23,503 PMX 9.47 $222,573.41 Muni
149,000 PHK 12.1342 $1,807,995.80 HiYld
114,465 PFL 10.8627 $1,243,398.96 Floaters
128,033 PFN 9.3686 $1,199,489.96 Divers
161,068 PCN 14.5761 $2,347,743.27 Corp
142,615 PTY 15.8023 $2,253,645.01 Corp
100,000 PTY 15.7 $1,570,000.00 Corp (Spouse)
12/14/2010 16,237 PTY 15.8714 $257,703.92 Corp
50,000 PHK 12.0903 $604,515.00 HiYld
50,000 PFN 9.6383 $481,915.00 Divers
50,000 PFL 11.0896 $554,480.00 Floaters
46,701 PCN 14.6249 $682,997.45 Corp
Totals 1,568,209 $18,552,514.87

Full Disclosure: No position in above funds.

Source: Bill Gross Continues His Fixed Income CEF Buying Spree