Pimco Plows $2 Billion Into Assets Depressed by Recession Fears
- Purchases of leveraged debt are part of broader strategy
- Approach gives lifeline to banks struggling to offload assets
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Pacific Investment Management Co. is using its deep pockets to snap up bargains among assets that have been hurt by the cost of living crisis, surging inflation and rising interest rates.
The Newport Beach, California-based fund manager has spent more than $2 billion in recent months to buy leveraged debt backing consumer companies that banks had struggled to offload. The purchases are part of a broader strategy at the firm to capitalize on depressed prices, according to people familiar with the matter, who asked not to be named because details are private.