NEW YORK Feb 5 Bill Gross, manager of the
world's largest bond fund at Pimco, said Wednesday that lower
government deficits are slowing credit growth, a phenomenon that
may hurt risk assets.
"With the deficit now down to $600 billion or so, the
Treasury is fading as a source of credit growth," Gross said in
his monthly letter to investors. "If so, high quality bonds will
continue to be well bid and risk assets may lose some luster."
Gross also said that Pimco has "a better team at this moment
than we were before." Pimco said last month that chief executive
and co-chief investment officer Mohamed El-Erian would leave the
firm by mid-March, leaving Gross as the sole chief investment
Gross's flagship Pimco Total Return Fund has $237 billion in
assets. Pacific Investment Management Co., a unit of European
financial services company Allianz SE, had $1.92
trillion in assets as of Dec. 31, 2013, according to the firm's