Bill Gross, who pioneered the “total return” strategy in the 1980s that revolutionized the bond market, says the approach is now defunct.

Famed bond investor Bill Gross says the “Total Return” investment strategy he helped create in the late-80s is “dead.” The retired co-founder of fixed-income specialist Pacific Investment Management Co.

The high level of US debt issuance signals to investors that they should expect yields to move higher, not lower, according to "bond king" Bill Gross. The billionaire investor and PIMCO co-founder wrote in a note on Thursday that the US fiscal deficit,

It’s hard to argue with the risks the famed investor sees from rising US debt, but bonds are an important piece of a balanced portfolio.