Janus Capital shorts pay off

Last week Bill Gross, the former chief of PIMCO and now lead portfolio manager at Janus Capital, said the Unconstrained Bond Fund he runs had profited from staying away from high-yield bonds and in some cases shorting the High Yield CDX, which is an index of 100 liquid North American entities with high yield credit ratings traded in the credit default swap market. He said a falling Chinese stock market would create volatility in other markets in which investors could take advantage. “It’s not necessary to short the Chinese stock market, [as a] matter of fact it’s very dangerous, what you do is you look outside the Chinese economy.”