Bill Gross, founder and co-chief investment officer of Pimco has recommended emerging debt in his latest newsletter, saying that investors are being "shortchanged" by US Treasurys.

In his inimitable style, Gross starts off his newsletter with a tale of how as a young seaman, he was a nightwatchman when he spotted a tanker on automatic pilot heading directly for his ship, forcing him to rouse the captain. The captain promptly fell asleep at the helm, allowing the tanker to pass within 20 yards of the ship.