Bill Gross, founder of fixed income giant Pimco, sold out of US Treasuries earlier this year, and took out a short position against the troubled asset class. After yesterday’s warnings on US debt by rating agency S&P, the bet may be timely one, but Pimco remains exposed to US Treasuries.

Gross manages the world's largest bond fund, the $236 billion Total Return Fund, and sold out his 12% position in US Treasuries in February. One month later, he took out a short position worth 3% of the fund's total portfolio.