How big a risk to bond market liquidity is Bill Gross' shock exit?

How big a risk to bond market liquidity is Bill Gross' shock exit?

Since Bill Gross's surprise departure from PIMCO on Friday, markets have rightly been focusing on the impact this may have on bond markets.

PIMCO has several funds and many segregated mandates that follow a similar, unconstrained, type of strategy (the largest of which is the $220bn Pimco Total Return fund). As with any change of a high profile manager, there will be investors reviewing the fund, and some are likely to decide to exit. The fact that the fund has not been performing up to PIMCO's high expectations recently has already seen it lose assets of over $70bn in the last year, so the departure of Mr Gross could be the catalyst to provide another wave of selling. Fast money has already been trying to get in front of...