Pimco's Bill Gross has increased the cash level in the firm's flagship total return fund (PTTRX) to 7%. This compares to a negative 7% cash position in October. This higher cash level would indicate the firm expects interest rates to rise near term. Does this mean Pimco believes a stronger economy is ahead of us or is it simply the fact the Fed is beginning to step away from some of its fixed income market support programs? Time will tell.
Pimco’s Gross Boosts Cash to Most Since Lehman Failed
By: Wes Goodman and Garfield Reynolds
December 17, 2009