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Pimco’s Gross Wagering on Low Volatility in ‘New Neutral’

Bill Gross said Pacific Investment Management Co., manager of the world’s biggest bond fund, has been betting that volatility across asset classes will remain very low, as gauges of price swings fall to their lowest levels on record.

“We sell insurance, basically, against price movements,” Gross, chief investment officer of Pimco, said in an interview today in Chicago at Morningstar Inc.’s Investment Conference. “At Pimco, that’s what we’ve tried in the last four or five weeks.”