T Bills are an interest rate risk if longer interest rates go *down*. ie benchmark risk.
Probably they are pledged as collateral against the derivative hedges.
The question then is can the fund speculate using derivatives? Probably the documentation is not 100% clear on this.
I don't understand your point about the T-bills. Would you please elaborate.
I assume by "speculate" you mean leverage. Speculate can mean a lot of different things, some good some bad. As far as leverage is concerned, the documentation is indeed vague. I did look once and saw that the liabilities were matched by short term investments which indicated to me an accounting thing and not leverage per se. If Pimco was leveraging I think we would know it from the media. For example M*'s analysis report doesn't mention leverage in their risk summary:
http://analysis.morningstar.com/analyst ... ountry=USARisks
• Some retail share classes are too pricey for our taste.
• Fund sometimes makes aggressive bets, which could result in more short-term volatility.