Star bond manager Bill Gross has netted $1.7bn (£968m) in profit after betting against ailing mortgage giants Fannie Mae and Freddie Mac, The Telegraph reports.
Mr Gross, who manages Pimco's Total Return Fund, was an ardent critic of the two mortgage firms, which came under government control at the weekend as a result of continued uncertainty over their financial standing. Mr Gross's fund took significant positions against Fannie and Freddie, moves that paid off on Monday, leading to the fund increasing in value by $1.7bn - 1.3pc of its total assets. He had shifted the fund away from corporate bonds and US government securities into mortgage debt in recent months and held 69pc in mortgage debt on Monday morning, the first trading window after ...
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