Skip to content
Subscriber Only

Gross Trying to Short Credit to Reverse Decades of Instinct

  • Gross expects June Fed rate hike and gradual increases later
  • Janus fund has returned 1.7% since Gross took over in 2014
Video player cover image

Bill Gross: Why I'm Trying to Go Short on Credit

Updated on

Bill Gross, who built a career and a $1.9 billion personal fortune as a bond investor, is trying to overcome his reluctance to bet against corporate debt, a position that he said runs contrary to his instincts and training.

Gross, who manages the $1.3 billion Janus Global Unconstrained Bond Fund, said he expects corporate-bond prices to fall in part because they’ve risen so fast since mid-February but also because he believes a day of reckoning will come when central banks will no longer be able to prop up assets and investors will withdraw from markets.