Pimco’s Gross Wagering on Low Volatility in ‘New Neutral’
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Bill Gross is applying Pacific Investment Management Co.’s theory of the “new neutral” beyond bonds, wagering that volatility across markets will remain abnormally low.
“We sell insurance, basically, against price movements,” Gross, chief investment officer of Pimco, said in an interview yesterday in Chicago at Morningstar Inc.’s Investment Conference. “At Pimco, that’s what we’ve tried in the last four or five weeks.”