NEW YORK, March 1 Bill Gross, co-chief
investment officer at PIMCO, on Thursday took issue with a
derivative panel's decision that the restructuring of Greek debt
does not trigger a payout on insurance protection, even after
his firm backed the move.
Bond giant PIMCO was one of 15 banks, hedge funds, and asset
managers in the International Swaps and Derivatives Association
that voted on Thursday against declaring the restructuring a
credit event that would trigger a payout on credit default
"If I were a buyer of protection on Greece and have seen the
result this morning in terms of no protection, then I would be
upset," Gross, manager of the world's largest bond fund, said
on CNBC television of the ISDA's decision.
The decision prevents credit default swap insurance payments
from being triggered. The net worth of these contracts is $3.25
Gross also addressed today's launch of PIMCO's new Total
Return exchange traded fund and said that the ETF will
allow investors to gain a better performance than a standard
bond index, with yields between 3-4 percent.
Asked about Warren Buffett's recent calls to sell bonds,
Gross said, "fixed income will always have a place, even at a
3-4 percent type of return."
Pacific Investment Management Co., or PIMCO, oversees $1.35
trillion in assets.