Bill Gross Isn’t Short Treasuries, He is Short Swaps Which Is Entirely Different!

Bill Gross was on Bloomberg Television’s “InBusiness with Margaret Brennan” today to discuss the bond market, the U.S. deficit and European debt crisis. The number one issue we were interested in was whether Bill Gross is short on treasuries or not. Here is what he said:

“We are not. To a certain extent, it may be our fault because we have a category in terms of our monthly release that is called treasury or treasury related securities. It could be Treasuries, it could be agencies, it could be swaps which sophisticated bond investors know are entirely different from Treasuries so the extent that it shows up as a short then it’s almost entirely been in the swap category as opposed to the Treasuries. The Total Return Fund has had tens of billions of dollars worth of treasuries, to some extent in short-term Treasuries and bills and and collateralized repo. It has never been a question of Pimco in terms of the Treasury’s reputation and its potential to default. It has always been a question of value in terms of interest rates relative to other alternatives.”

This is a mind boggling response. We are not sophisticated bond investors, we are just a monkey. Pimco sold swaps which are “entirely different from Treasuries”. If they are entirely different from Treasuries, why couldn’t Pimco benefit from the 50 basis point rally in the treasury market? We feel like Gross is trying to distance himself from his “short the treasuries” call which was a total fiasco. If treasuries collapsed during past few weeks, we are sure Gross wouldn’t claim that “swaps are entirely different from Treasuries”.

blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

The Top 10 States With Fastest Internet Speeds

10 Best Places to Visit in USA in August

Top 10 Cities to Visit Before You Die

Top 10 Genetically Modified Food In the US

15 Highest Grossing Movies Opening Weekend

5 Best Poker Books For Beginners

10 Strategies Hedge Funds Use to Make Huge Returns

Top 10 Fast Food Franchises to Buy

10 Best Places to Visit in Canada

Best Summer Jobs for Teachers

10 Youngest Hedge Fund Billionaires

Top 10 One Hit Wonders of the 90s

Fastest Growing Cities In America

Top 10 U.S. Cities for Freelancers

Top 9 Most Popular Free iPhone Apps

Top 10 Least Expensive Private Business Schools in the US

Top 15 Most Expensive Countries in the World – 2014

Top Businesses to Invest In

Top 5 Things You Might Be Doing Wrong With Your Business

Top 5 Strategic Technology Trends in 2014

Top Rags to Riches Stories

Parenting Behavior That Promotes Future Leaders

Top 5 Mistakes Made by Small Businesses

Top 5 Most Common and Potentially Devastating Financial Blunders

Top 5 Highest Paying Jobs for Web Designers

Top 6 Most Respected Professions that Also Pay Well

Top 5 Pitfalls Investors Should Avoid

Top 6 Lawyers and Policy Makers Under 30

Top 6 New Year’s Resolutions for Entrepreneurs

Top 7 Locations to Check in on Facebook

Top 5 Mistakes made by Rookie eBay Sellers

Top 7 eBook Publishers in 2013

Top 6 Health Industry Trends in 2014

5 Lessons for Entrepreneurs from Seth Godin

Top 5 Success Tips from Jordan Belfort – the Wolf of Wall Street

Best Master’s in Finance Degree Programs

Top 6 Earning Celebrities Over 50

The most expensive sports to play

Top 7 Earning Celebrities Under 25

Best 7 Online Courses to Take: Free Finance MOOCs

Top 6 Bad Habits that Promote Failure

20 Most Valuable Soccer Teams in the World in 2013

12 Most Expensive Countries for Foreign Students

Top 30 Most Influential Women in the World

Top 20 Most Expensive New Year Eve Shows

Top 5 Best Vocational Careers

Top 10 Jobs for 2014 by Salary Gain (Predictions)

Top 5 Digital Trends for 2014

Top 6 Things You Can Do To Increase Your Productivity

Top 9 Trending Smartphones in 2013

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!