PIMCO's Bill Gross says its a misconception that the firm was short Treasuries (spread by an errant blogger). I guess the -4% in the US Govt category is an optical illusion?
... um yeah we are not short Treasuries so much as we are short swaps and futures whose performance is is just like being short Treasuries.
And how did the firm do betting against the U.S. Treasuries?
Yeah we were on the wrong side of that trade but outperformed 77% of our peers despite the rally in Treasuries because we, umm, bought other stuff that did better.
My words, not his of course, but is it me or does the CNBC media blitz from PIMCO sound like the Clinton-Lewinski thing all over again? I did not short that Treasury (I just did other stuff that was just like it and got me in just as much trouble)!
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