The fund can have a negative position by using derivatives or futures or by shorting. Shorting is borrowing and selling an asset in anticipation of making a profit by buying it back after its price has fallen.
The firm's U.S. government-related debt category can include conventional and inflation-linked Treasuries, agency debt, interest-rate derivatives, Treasury futures and options and bank debt backed by the Federal Deposit Insurance Corp., according to the company's website. Pimco, a unit of the Munich- based insurer Allianz SE, managed $1.28 trillion of assets as of March 31.