In the media is a news that Bill Gross, the highly acclaimed bond fund manager is leaving Pacific Investment Management Corporation [www.pimco.com] to join Janus Capital.

[http://www.bbc.co.uk/news/business-29495997]

The Pimco Total Return Fund that was run by Bill Gross and currently has over US$200bn under management

[http://www.google.co.uk/finance?cid=246009576812464]

Nearly 19% of the $200bn is held in US Treasury 10 Year Bonds. One way of looking at major investment is total faith in the US Treasury’s ability to repay its debts.
(that is $40bn exposure).

What is curious, is that in the past 16 months $68 billion has been pulled out of the fund, a sign that the fund has not been performing, and more importantly with Bill Gross (aka The Bond King) leaving, almost certainly more money will be withdrawn.