PIMCO

In the accompanying presentation, it is easy to see why Bill Gross' PIMCO is highly bullish on credit of any variety. As the table below demonstrates, taken straight out of the biggest bond fund's May 2009 presentation "Investing for the Journey and the Destination: What it means across the Capital Structure" PIMCO doesn't see any overvalued instruments in the credit realm: MBS, IG, EM and HY/Loans all have wonderfully green and positive metrics in the valuation column.

In the accompanying presentation, it is easy to see why Bill Gross' PIMCO is highly bullish on credit of any variety. As the table below demonstrates, taken straight out of the biggest bond fund's May 2009 presentation "Investing for the Journey and the Destination: What it means across the Capital Structure" PIMCO doesn't see any overvalued instruments in the credit realm: MBS, IG, EM and HY/Loans all have wonderfully green and positive metrics in the valuation column.

According to latest holding disclosures Bill Gross is elbow deep in the U.S. mortgage mess. Of $138 billion in total assets under management, PIMCO has 86% invested in mortgage-backed securities. Additionally, the recently demustachioed Newportian has been buying treasuries through the nose: from January to February, his TSY holdings have increased from -2% (oops, someone was short Uncle Sam. j/k: he is merely another fan of the repo trade) to 15%.

Bill Gross' recent foray into a shadow government role may be just in time to avoid the depression from spreading onto the green, green grass of the Newport Beach country club.

Bill Gross' recent foray into a shadow government role may be just in time to avoid the depression from spreading onto the green, green grass of the Newport Beach country club.

Treasury selloff continues. As equities are poised to hit ridiculously high fwd P/E ratios, someone is making sure that Bernanke and Bill Gross hit the Prozac handout line. Hold on, wasn't the Fed buying treasuries? What about the world's biggest bond fund? Based on this chart, seems like sellers are outnumbering buyers by just a tad...

Treasury selloff continues. As equities are poised to hit ridiculously high fwd P/E ratios, someone is making sure that Bernanke and Bill Gross hit the Prozac handout line. Hold on, wasn't the Fed buying treasuries? What about the world's biggest bond fund? Based on this chart, seems like sellers are outnumbering buyers by just a tad...

Treasury selloff continues. As equities are poised to hit ridiculously high fwd P/E ratios, someone is making sure that Bernanke and Bill Gross hit the Prozac handout line. Hold on, wasn't the Fed buying treasuries? What about the world's biggest bond fund? Based on this chart, seems like sellers are outnumbering buyers by just a tad...

Bill Gross, manager of PIMCO, the largest bond fund in the U.S., issued his February investment outlook today.