«Since June 2010, Gross has been reducing the $ 245 billion fund's vulnerability to
interest -
rate swings and increasing its reliance on credit quality
by shifting from Treasuries to corporate and non-U.S. sovereign debt, a strategy that backfired last month,» according to Bloomberg.
They are sought because of the lower
interest rates offered nowadays, and they are especially sought
by holders of variable -
rate mortgages that can allow monthly payments to
swing wildly.