| NEW YORK, April 11
NEW YORK, April 11 Dan Fuss, known as the Warren
Buffett of bonds, said his $23 billion Loomis Sayles Bond Fund
is sitting on more than 20 percent of cash and cash equivalents,
its highest level ever, because he sees scant opportunities in
the bond market.
"If we saw a lot of value, we wouldn't have those reserves,"
Fuss told Reuters in an interview on Friday.
Fuss, vice chairman and portfolio manager at Loomis Sayles,
which oversaw $199.8 billion as of Dec. 31, said the Loomis
Sayles Bond portfolio has been building cash since early 2013
and has boosted levels as fixed-income securities have become
"The bond market is a bid-only market," Fuss said. "The
danger in the corporate bond market is not the availability in
the money. The problem is that for providing the money for an
extended period of time, you don't get the same amount of
protection that you used to on the lower-rated credits."
Fuss called junk bonds and corporate debt securities
"At the long end of corporates, the liquidity is great if
you're a seller," he said. "It's non-existent if you're a
Fuss said Loomis did not participate in Greece's auction on
Thursday of five-year bonds, which marked the country's return
to the bond market after nearly crashing out of the euro zone
two years ago. Greece sold the bonds at a yield less than 5
In 2014, the Loomis Sayles Bond Fund has posted a return of
3.94 percent, outperforming 86 percent of its peers, according
to Morningstar data. Over the past 10 years, on an annualized
basis it has returned 8.24 percent, surpassing 94 percent of its
peers for the same period, according to Morningstar data.
For its five-year record, the Loomis Sayles Bond Fund has
posted returns of 14.94 percent, ahead of 86 percent of its
(Reporting by Jennifer Ablan; Editing by Leslie Adler)