Pimco’s Long-Short-Long Position in U.S. Debt

By Paul Kedrosky · June 9, 2011 · ·

PIMCO’s Bill Gross is apparently net short U.S. debt in the sense that it is net long said debt. Got that? Me neither, but it’s fun.

Pacific Investment Management Co., under criticism for missing this year’s rally in Treasuries, revised how it lists asset holdings to show that its flagship fund held U.S. government debt in May.

The $243 billion Total Return Fund managed by Bill Gross increased its holdings of U.S. government debt to 5 percent from 4 percent in April, according to data on the Newport Beach, California-based company’s website. In the prior month’s posting, the category that was classified as government and government- related debt had shown negative holdings of 4 percent. The website showed an added category this month of swaps and liquid rates with holdings of minus 9 percent. Michael Reid, a spokesman at Pimco, declined to comment.

via Pimco Adjusts to Show Gross Fund Owns U.S. Debt – Bloomberg.

Related posts:

  1. The Trouble with Debt-to-GDP Ratios
  2. Growth in a Time of Debt
  3. Readings: Risk, Long/Short Myths, China Oil, Pimco, etc.
  4. Peter Thiel’s Long/Short Singularity Market Apocalypse Trading Technique
  5. Ferguson: Cancel U.S. Debt

Comments

  1. AHodge says:
    June 10, 2011 at 7:16 am

    talking mixed long short netting is nearly useless in bonds
    whats your daily VAR exposure to rates–duration?
    Bill pimco no doubt hedging w bond shorts
    also clearly has been he says short at least against his bogies and wrong so far
    im with him
    just holding my ammo til after next week
    or the saudis collapst eh oil price

Trackbacks

  1. FT Alphaville » Further reading says:
    June 10, 2011 at 1:37 am

    [...] Pimco has a long-short-long position in US [...]

  2. FT Alphaville » Pimco explains how frogs make butter out of government debt says:
    June 10, 2011 at 7:39 am

    [...] course, this “long-short-long position” (H/T Paul Kedrosky) using derivatives is Gross’s way to retain his negative position on interest rates — [...]