Bill Gross hearts New York. The bond bigwig has more than doubled his holdings of municipal debt sold in New York, helping propel the world's largest bond fund to its biggest investment in local securities in six years, according to Bloomberg.
The news service reports Gross' $285 billion PIMCO Total Return Fund, boosted its New York state allocation to about a $3 billion market value in the quarter ending Sept. 30, from $1.4 billion as of June 30. It was the largest increase by amount among U.S. states.
Bloomberg data shows Gross has been buying more New York debt as municipal sales in the state are set to outpace California's for the second straight year. It adds issuance may get a further boost as New York borrowers such as the Metropolitan Transportation Authority finance rebuilding after Hurricane Sandy.
