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UPDATE 1-PIMCO's Gross says bought $100 million of BP debt
June 16, 2010 / 6:36 PM / 7 years ago

UPDATE 1-PIMCO's Gross says bought $100 million of BP debt

(Adds details on BP, Anadarko purchases, byline)

By Jennifer Ablan

NEW YORK, June 16 (Reuters) - Bill Gross, the co-chief investment officer of PIMCO, said on Wednesday that he recently bought $100 million of short-maturing BP Plc (BP.L) (BP.N) notes and some Anadarko Petroleum (APC.N) paper.

Gross told Reuters via email that he purchased BP paper and “some Anadarko, which is a 20 percent owner,” in recent days.

He earlier told CNBC television: “BP 5-year bonds yield 6 to 7 percent, BP 12-month paper yields 10 to 11 percent. This is either a double-A company or a triple-C company depending upon the caps and the ultimate cost.”

Gross said on CNBC: “At this point, if you can get 10 percent on one-year paper on BP, we think it’s closer to double-A than triple-C. That’s a significant (thing). We started to buy some.”

Gross told Reuters in a follow-up question that he bought six- to 12-month Anadarko notes. Asked about whether he will add more BP and Anardarko securities, he said: “Future purchases are market and event-dependent.”

Gross helps oversee more than $1 trillion in assets at PIMCO.

Editing by Chizu Nomiyama

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