NEW YORK ( TheStreet) -- Bargain shoppers have to wait until after Thanksgiving for Black Friday bargains, but bond giant Pacific Investment Management Co. is looking to get a head start, according to a Bloomberg News report Friday.
PIMCO's fund will raise $1 billion to buy cheap mortgage assets, both residential and commercial, the report states. PIMCO has already raised $5 billion since 2007, which it has used to make similar investments, the report states. The latest fund has been dubbed BRAVO, for Bank Recapitalization and Value Opportunities.
Other money managers, including Fortress Investment Group (FIG - Get Report), The Blackstone Group (BX - Get Report) and PennyMac (PMC - Get Report) have also been active buyers of distressed mortgage assets, as has BlackRock (BLK - Get Report), which recently raised a new fund for originating loans to less-than-pristine borrowers.
Big lenders like JPMorgan Chase (JPM - Get Report), Wells Fargo (WFC - Get Report) and Bank of America (BAC - Get Report) are expected to be selling off cheap mortgage assets for years. However, PIMCO will focus on small lenders and community banks, the report states.A PIMCO spokesman declined to comment. -- Written by Dan Freed in New York.