Comments on: PIMCO Launching New Bond Fund http://www.fundmasteryblog.com/2007/09/13/pimco-launching-new-bond-fund/ Mutual Funds, Investing, Retirement, Economy, Personal Finance Fri, 12 Mar 2010 06:37:17 +0000 http://wordpress.org/?v=2.3.1 By: Kurt Brouwer http://www.fundmasteryblog.com/2007/09/13/pimco-launching-new-bond-fund/#comment-187 Kurt Brouwer Fri, 14 Sep 2007 16:26:26 +0000 http://www.fundmasteryblog.com/2007/09/13/pimco-launching-new-bond-fund/#comment-187 Brad, good points. At the right price, distressed bonds can be attractive. If you want to invest directly in distressed mortgage-backed bonds, it would be more difficult, but not impossible. An easier and more diversified way to participate would be to invest in the PIMCO fund featured in this post. Another fund making these kinds of investments is Wintergreen Fund. I recently posted on it. Brad, good points. At the right price, distressed bonds can be attractive. If you want to invest directly in distressed mortgage-backed bonds, it would be more difficult, but not impossible.

An easier and more diversified way to participate would be to invest in the PIMCO fund featured in this post. Another fund making these kinds of investments is Wintergreen Fund. I recently posted on it.

]]> By: Brad S http://www.fundmasteryblog.com/2007/09/13/pimco-launching-new-bond-fund/#comment-186 Brad S Fri, 14 Sep 2007 04:01:47 +0000 http://www.fundmasteryblog.com/2007/09/13/pimco-launching-new-bond-fund/#comment-186 Kurt, how soon do you think it would be before GoldmanSachs, BearStearns, etc, started offering those CDOs to the individual investor on a retail basis? Has the price gotten low enough to do so? And can Goldman and Bear leverage the power of their brand names to get them sold? It seems to me that PIMCO has probably done enough research into the delinquency rates of subprime mortgages to conclude that the risk is tolerable enough for investment. I just wish the big firms would be willing to let everyone else take a share of that risk, as I'm convinced that subprime mortgages aren't nearly as toxic as claimed to be. Kurt, how soon do you think it would be before GoldmanSachs, BearStearns, etc, started offering those CDOs to the individual investor on a retail basis? Has the price gotten low enough to do so? And can Goldman and Bear leverage the power of their brand names to get them sold?

It seems to me that PIMCO has probably done enough research into the delinquency rates of subprime mortgages to conclude that the risk is tolerable enough for investment. I just wish the big firms would be willing to let everyone else take a share of that risk, as I’m convinced that subprime mortgages aren’t nearly as toxic as claimed to be.

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