Gross: Bonds are suffering from a 'thousand machine gun' assault

PIMCO's Bill Gross has likened the recent sell-off in bonds to the "Battle of the Somme", but said the group is well positioned to fight on in future.

Gross, the world's biggest bond investor and manager of the $262bn Total Return Bond fund, saw net outflows of $7.5bn from his flagship vehicle in July, after June's record figure of $9.6bn. The manager (pictured) said while bond investors had been facing "a thousand machine guns" in the last few months, PIMCO as a group will be able to weather rising yields. "Now that bonds have suffered a near Somme-like defeat in the past few months, fixed income investors are concerned about their prior conceptions of bonds as an asset class - an asset that has historically provided reliable incom...