Brian Chappatta, Columnist

What Is Bill Gross’s Bond Fund Even Betting on Anymore?

Its negative duration and equity-related holdings have been a toxic combination.

October 25, 2018 at 5:09 PM UTC

Brian Chappatta is managing editor of Bloomberg News' leveraged finance and distressed debt teams. He was previously managing editor and team leader of its wealth group. Before that he was a Bloomberg Opinion markets and finance columnist and a bonds reporter for Bloomberg News.

There’s such a thing as being too unconstrained.
Photographer: Patrick T. Fallon/Bloomberg

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When is a self-described “bond fund” no longer a bond fund?

That’s my question after looking at the recent performance of Bill Gross’s Janus Henderson Global Unconstrained Bond Fund, which saw its net asset value drop on Wednesday to match its lowest level ever. The kicker, of course, is that the latest bout of stock-market volatility has been great for fixed-income investors as a whole. On Oct. 11, the Bloomberg Barclays U.S. Aggregate Bond Index gained the most since late May. It’s currently on a three-day win streak.