PIMCO's Gross bets $4.4m of own money on municipal bonds

PIMCO's co-CIO Bill Gross has poured $4.4m (£2.7m) of his own money into five municipal bond funds run by the group in anticipation of a rally, Bloomberg reports.

Gross, who manages the world's largest bond fund, the $250bn PIMCO Total Return fund, has more than doubled his holdings in the closed-ended bond funds, according to SEC data. Municipal bonds are issued by cities or local government agencies, and in the US the income from them is usually tax exempt. Gross bought about 451,000 shares in the PIMCO funds in December, bringing his total holdings to about 878,000 shares. The municipal bond market has dropped in the past two months due to a jump in new bond issuance and rising treasury rates. Tax-free holdings lost 2.29% in November, ...