Pimco Managing Director Bill Gross argues in a Morningstar column that while bond managers need to adapt to a new normal of low interest rates and lower returns, there will always be a place for the "bond market army." Gross writes that while some aspects of bonds, such as maturity risks, can backfire in a low-yield environment, investors should focus on the total "carry" of a portfolio. He cites the example of the diversifying function of carry in bonds, such as credit spreads, volatility premiums and yield curve differences.

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