Black Friday Comes Early for PIMCO
NEW YORK (
) -- 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)
,
The Blackstone Group
(BX) - Get Report
and
PennyMac
(PMC)
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
.
Disclosure: TheStreet's editorial policy prohibits staff editors, reporters and analysts from holding positions in any individual stocks.
