mj...The only time we noticed any appreciable affect on bonds due to rising interest rates was when we owned a bond on one company only. Even then we never sold it due any loss in value. We don't worry about that with the 14 CEFs and ETFs we own. Good luck to you. retiredafe8
"We keep hearing about how share price of bond funds should decrease ..."
When rates rise the prices of individual bonds and other rate sensitive investments drop. This would also affect unmanaged bond funds, i.e. something similar to unit trusts where the investments are not traded or where the mandate doesn't allow much room for trading or allocation.
A managed fund, especially one managed by someone like Bill Gross should be able to weather rate changes through management of maturities and different issuers. In fact, for someone as knowledgeable as Gross, changing market conditions should provide him the opportunity to make further gains by playing the market to some extent.
It doesn't mean that risks do not exist in a fund like PTY, but that there is less risk than if you were attempting to invest in a few bonds yourself.