Bill Gross, the wizard behind Pimco, has just invested $4.4 million in his companies’ closed-end Muni bond funds. Being a smart investor, he bought one fund, PMX at a 3.4% on Dec. 10. Municipal bond prices have been stumbling of late, so this is a good sign. He is widely seen as one of the experts in the bond market.
Bill Gross added to his shares from December 8-10, 2010 in the Pimco California Municipal Income Fund (PCQ), Pimco California Municipal Income Fund II (PCK), Pimco California Municipal Income Fund III (PZC), Pimco Municipal Income Fund (PMF)and Pimco Municipal Income Fund III (PMX), according to the SEC filings.
Mr. Gross said in an CNBC interview that he found some Muni funds presented a buying opportunity relative to Treasury bonds, and in some cases, corporate debt. He also stated that he is avoiding Illinois debt.