The House voted 269-161 yesterday to approve the measure, which raises the national debt ceiling enough to fund the government until 2013 and threatens automatic spending cuts to enforce a goal of cutting $2.4 trillion over the next decade. That goal falls short of the long-term deficit savings that President Barack Obama and Republican leaders initially sought.
Standard & Poor's placed the U.S. AAA rating on "CreditWatch" July 14, saying there's a 50 percent chance it would be cut within 90 days even if an agreement is reached by the deadline. S&P said it needs to see "a credible solution to the rising U.S. government debt burden."
Mohamed A. El-Erian, the co-chief investment officer along with Gross at Pimco, said July 25 that the U.S. may lose its AAA rating.
The Total Return Fund has returned 5.86 percent in the past year, beating 71 percent of its peers, according to data compiled by Bloomberg. It gained 1.32 percent over the past month, beating 35 percent of its competitors. The firm manages $1.3 trillion in assets as of March 31.