- A late August filing showed Bill Gross' Total Return Fund (ETF version: BOND) unloaded most of its $4.8B in Treasurys and replaced them with a similar amount of Treasury futures. The futures contracts require less money up front than the outright purchase of Treasurys, freeing up money for Gross to buy spread product - corporates and overseas paper.
- In the year through September 15, Total Return trailed 57% of peers, returning 3.3%.
- Asked about the levering up, Gross says it's a strategy Pimco has used for years. "What it basically means is that Pimco can turn a Treasury yield into a corporate yield with a Treasury quality and Treasury liquidity."