Bill Gross says PIMCO’s strategy is pretty simple: Buy what the Federal Reserve and other central banks are buying.

“We continue to anticipate what the Fed is buying,” Gross recently told CNBC. “They’ve told us they will buy $40 billion to $70 billion of agency mortgages every month until the cows come home. It pays to own these mortgages even though they’re overvalued.”

Another area PIMCO is looking, thanks to central banks: Spanish and Italian bonds. “[The European Central Bank] told us they are going to buy Spanish and Italian 1- to 3-year debt should those countries apply for a rescue,” he said, adding that he thinks the ECB will be buying Spanish bonds in two to four weeks.