Pimco's Gross: Firm Has Started Buying BP 1-Year Bonds -CNBC

16th Jun 2010 18:39

DOW JONES NEWSWIRES Bill Gross, co-investment chief for Pacific Investment Management Co., said Wednesday that the huge bond-fund firm holds "very small amounts" of debt of BP PLC (BP, BP.LN) but has recently begun buying one-year bonds issued by the oil company. Gross, interviewed on CNBC, pointed out that BP's five-year bonds currently yield 6% to 7% while its 12-month paper has a yield of 10% to 11%. "At this point, if you can get 10% for one-year paper on BP, we think it's closer to double-A than triple-C" in terms of debt quality, the Pimco executive said. "That's a significant value and we've started to buy some." Website: www.cnbc.com -Dow Jones Newswires; 212-416-2900 Order free Annual Report for BP plc Visit http://djnewswires.ar.wilink.com/?link=BP or call 1-888-301-0513 (END) Dow Jones Newswires June 16, 2010 13:39 ET (17:39 GMT)