Fund Seeks $5B To Take Advantage Of Fire Sales Of Junk MBS

Bloomberg News reports:

• Pacific Investment Management Co., the biggest manager of bond funds, is seeking as much as $5 billion to buy mortgage-backed debt that plunged in value after the subprime market collapsed, according to two investors with knowledge of the matter.

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• "There's a handful of firms out there, Pimco being one of them, that are well-positioned to deal with this credit crisis and the fire sales going on in mortgage-backed securities,'' Geoff Bobroff, a mutual-fund consultant in East Greenwich, Rhode Island, said in an interview.

For more, see Pimco Seeks as Much as $5 Billion for Distressed Debt.