Romney Threatens Pimco’s Gross With Bernanke-Dumping Plan
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Mitt Romney’s pledge to dump Federal Reserve Chairman Ben S. Bernanke is threatening Bill Gross with losses on his Mexican bonds.
Yields on peso bonds due in 2024 fell 1.04 percentage points this year to 5.62 percent as the Fed’s effort to suppress borrowing costs at record lows caused fixed-income investors to pile into the debt to boost returns. Gross’s Pacific Investment Management Co., the biggest holder of the notes, called Mexican debt one if its favorites Oct. 3, three months after he said he preferred them over German bunds. Mexican bonds returned 18.6 percent this year, twice the average for emerging markets.