They Just Wanna Sell You a Bond Fund
May 1, 2024
Bill Gross Warns Investors to Steer Clear of Bond Funds
May 6, 2024Bill Gross Says ‘Total Return’ Strategy He Pioneered Is ‘Dead’
By Ye Xie
May 2, 2024
Gross says 10-year yields will rise above 5% in a year
Government will increase debt supply to keep economy growing
Bill Gross, who pioneered the “total return” strategy in the 1980s that revolutionized the bond market, says the approach is now defunct.
Instead of just picking up steady interest payments like his peers did at the time, the co-founder of Pacific Investment Management Co. created the firm’s Total Return Fund in 1987 to take active positions in duration, credit risk and volatility. The idea is that more than just clipping coupons, bond investors can also benefit from capital appreciation as bond prices rise and yields fall.
