On Wednesday, the Treasury revealed the identities
of the nine money managers for its Public-Private
was a no-show on the list. It turns out that Pimco yanked
its PPIP application in early June due to
"uncertainties regarding the design and implementation
of the program," the Los Angeles Times'
, quoting a Pimco statement.
The Newport Beach, California-based firm did not
One theory making its way around Wall Street, Petruno
reported, is that Pimco, despite being known as a savvy
bond investor, was not successful with its first foray into
buying troubled mortgage-backed bonds in 2007. This episode
could have triggered concerns within the firm that it might not
be able to raise the minimum $500 million seed capital from
investors that's required for a PPIP manager under the Treasury's
Managers who made it to the Treasury's list include: AllianceBernstein and sub-advisors Greenfield Partners, LLC and Rialto Capital Management, LLC; Angelo, Gordon & Co., L.P. and GE Capital Real Estate; BlackRock; Invesco; Marathon Asset Management; Oaktree Capital Management, RLJ Western Asset Management; The TCW Group; and Wellington Management Company.
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