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Look Who’s Buying Bonds, Part lll

Klotz on Bonds

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<h3>James A. Klotz</h3>

James A. Klotz

Another prominent investor increased his bond holdings recently.

Bill Gross, manager of PIMCO’s Total Return Fund, the world’s biggest bond fund, bought mortgage-backed securities and U.S. Treasuries and reduced the fund’s cash holdings in February, according to PIMCO’s (Pacific Investment Management Co.) Web site.

Despite his recent comments indicating a tepid view of the bond market, Gross increased holdings of mortgage-backed securities to 33 percent of the fund’s $72 billion, from 26 percent. He boosted Treasury holdings to 20 percent from 13 percent, while trimming cash holdings to 28 percent from 33 percent.

James A. Klotz is the President of FMSbonds, Inc.
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Apr 29, 2003

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