Bond Giant Gross Not Impressed with European Bailout
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One person not fooled by news of the European bailout forged Thursday. And that one person is PIMCO's Bill Gross.
Gross says that even after a bailout, there will be a "debt trap," luring unsuspecting investors. With the $149 billion bailout, repayment requirements for Spanish banks and conditions for Italy to receive funds were eased.
Avoiding debt from Spain and Portugal, Gross is sticking to U.S. Treasuries and mortgage securities. His Total Return Fund (Nasdaq: PTTRX) saw holdings in Treasuries rise for the first time since January, currently at 35 percent of holdings.
Markets are higher overall today on the bailout news.
Gross says that even after a bailout, there will be a "debt trap," luring unsuspecting investors. With the $149 billion bailout, repayment requirements for Spanish banks and conditions for Italy to receive funds were eased.
Avoiding debt from Spain and Portugal, Gross is sticking to U.S. Treasuries and mortgage securities. His Total Return Fund (Nasdaq: PTTRX) saw holdings in Treasuries rise for the first time since January, currently at 35 percent of holdings.
Markets are higher overall today on the bailout news.
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William H. Gross, Pacific Investment Management Company, LLC (PIMCO)Sign up for StreetInsider Free!
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