Bill Gross Used $45 Billion Derivatives to Lift Fund Gain | Bloomberg


While Gross’s move may boost the amount of income flowing into the fund, the trade also increases risk, in part because the securities purchased by Pimco Total Return are lower rated and less liquid than Treasuries.

Should the Treasuries market turn against Gross, Pimco Total Return would need to post additional cash or securities as margin for the futures position.

via Bill Gross Used $45 Billion Derivatives to Lift Fund Gain – Bloomberg.

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