Bill Gross, co-chief investment officer at PIMCO, on Thursday took issue with a derivative panel's decision that the restructuring of Greek debt does not trigger a payout on insurance protection, even after his firm backed the move.

Bond giant PIMCO was one of 15 banks, hedge funds, and asset managers in the International Swaps and Derivatives Association that voted on Thursday against declaring the restructuring a credit event that would trigger a payout on credit default swaps.

If I were a buyer of protection on Greece and have seen the result this morning in terms of no protection, then I would be upset, Gross, manager of the world's largest bond fund, said on CNBC television of the ISDA's decision.

The decision prevents credit default swap insurance payments from being triggered. The net worth of these contracts is $3.25 billion.

Gross also addressed today's launch of PIMCO's new Total Return exchange traded fund and said that the ETF will allow investors to gain a better performance than a standard bond index, with yields between 3-4 percent.

Asked about Warren Buffett's recent calls to sell bonds, Gross said, fixed income will always have a place, even at a 3-4 percent type of return.

Pacific Investment Management Co., or PIMCO, oversees $1.35 trillion in assets.

(Reporting by Sam Forgione; Editing by Theodore d'Afflisio and Andrew Hay)

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