Bill Gross Used $45B Derivatives to Lift Pimco Fund Gains

The video discusses how derivatives are used to boost returns on government bonds, focusing on PIMCO's strategy of selling US Treasurys and investing in futures contracts. This approach frees up cash for higher-yield investments. However, the PIMCO total return fund is currently trailing behind 57% of its peers this year.

What financial instrument is being used to potentially increase returns on government bonds?

• Commodities

• Stocks

• Derivatives

• Real Estate

What is the main advantage of using futures contracts in investment strategies?

• They offer higher interest rates.

• They require smaller down payments.

• They are risk-free.

• They are backed by the government.

How does the use of futures contracts affect cash availability for investments?

• It reduces available cash.

• It has no effect on cash.

• It ties up cash in long-term investments.

• It increases available cash.

What percentage of its peers is the PIMCO total return fund trailing this year?

• 43%

• 30%

• 57%

• 70%

What is the primary focus of the PIMCO total return fund's recent strategy?

• Increasing cash reserves

• Selling US Treasurys

• Investing in real estate

• Buying more government bonds