Pimco mum on vulture fund plans
Pacific Investment Management Co., which manages a global mutual fund, did not confirm reported plans of raising $1 billion to buy distressed loans from troubled banks. Bloomberg reported Thursday the firm was gathering private capital to go after distressed mortgages and bonds. The amount of "problem banks" overseen by the Federal Deposit Insurance Corp. went from 775 to 829 in the second quarter. Citing unnamed clients at Pimco, Bloomberg said the firm plans to work with a loan servicer to cure the mortgages with the borrower. Grant Thornton, which offers tax and advisory services, said earlier in the year that problem banks mean opportunities for some. "One thing appears certain – bank failures coupled with FDIC assistance will continue to present significant opportunities with clear and unique benefits for healthy banks and other investors," according to Grant Thornton. (Click on chart to expand.) Jon Daurio, chief executive of Kondaur Capital Corp., which operates a competitive fund that buys up distressed loans from troubled banks, told HousingWire in May that the strategy all depends on valuation. "There's no bad loan. There's only bad loan pricing," Daurio said. Write to Jon Prior.