Quantcast
The MFWire
Manage Email Alerts | Sponsorships | About MFWire | Who We Are

Subscribe to MFWire.com's News Alerts [click]

Rating:Pimco PM Finds Perks in Being a Vulture Not Rated 0.0 Email Routing List Email & Route  Print Print
Monday, July 23, 2012

Pimco PM Finds Perks in Being a Vulture

News summary by MFWire's editors

Mortgage-backed securities may have tanked the U.S. economy and many of its banks. Not so for Pimco [profile] Income Fund. Barron's profiles Dan Ivascyn, detailing how "picking through the rubble of the financial crisis" — as writer Michael Aneiro puts it — has worked out for the fund PM.

Famously, according to the $9.9 billion fund's annual returns in the past few years. After an initial 5.95 percent loss in 2008, the fund went on to achieve returns of 18.64 percent, 19.96 percent and 5.95 percent in the years following, as well as a second best-in-category 10.63 percent this year to date. Aneiro also points out here that its expense ratio is only 0.80 percent.

The fund is now primarily invested in mortgage-backed securities — 24 percent in agency MBS and 19 percent in nonagency residential MBS to be exact.

"It was a big benefit being relatively underweight nonagency mortgages leading into the crisis environment," says Ivascyn. "Yet as the crisis progressed, these assets became out of favor, and as people began selling them somewhat indiscriminately into the marketplace, we began adding to those positions."

Note that the fund generally avoids junk bonds in favor of bank loans, which it views as ranking highly among creditors getting repaid in a bankruptcy or default. Some of the fund's major holdings include a Hilton Hotels bank loan and a Springleaf Financial senior-secured bank loan.

Meanwhile, the fund restricts its European exposure to a handful of financial institutions including Barclays in core countries, some residential and commercial mortgages, and a handful of bonds backing Russian gas company Gazprom.  

Edited by: Irene Park


Stay ahead of the news ... Sign up for our email alerts now
CLICK HERE

0.0
 Do You Recommend This Story?



GO TO: MFWire
Return to Top
 News Archives
2020: Q1
2019: Q4Q3Q2Q1
2018: Q4Q3Q2Q1
2017: Q4Q3Q2Q1
2016: Q4Q3Q2Q1
2015: Q4Q3Q2Q1
2014: Q4Q3Q2Q1
2013: Q4Q3Q2Q1
2012: Q4Q3Q2Q1
2011: Q4Q3Q2Q1
2010: Q4Q3Q2Q1
2009: Q4Q3Q2Q1
2008: Q4Q3Q2Q1
2007: Q4Q3Q2Q1
2006: Q4Q3Q2Q1
2005: Q4Q3Q2Q1
2004: Q4Q3Q2Q1
2003: Q4Q3Q2Q1
2002: Q4Q3Q2Q1
 Subscribe via RSS:
Raw XML
Add to My Yahoo!
follow us in feedly




©All rights reserved to InvestmentWires, Inc. 1997-2020
14 Wall Street | 20th Floor | New York, NY 10005 | P: 212-331-8968 | F: 212-331-8998
Privacy Policy :: Terms of Use