Gross Counters Gundlach Pushing U.S. Bank Bonds DoubleLine Shuns

Pimco’s Bill Gross bet on debt of big U.S. banks last year, his worst against peers. DoubleLine Capital LP’s Jeffrey Gundlach cut bank bonds in May, dodging their second-half slide and beating 99 percent of rivals.

The competing bond managers haven’t changed their minds. Gross, whose $244 billion Pimco Total Return is the world’s largest mutual fund, recommended financial debt in this month’s investment outlook for Newport Beach, California-based Pacific Investment Management Co., saying senior, higher-rated securities “should be considered” as clients await the result of central-bank efforts to reinvigorate the global economy.