Thursday, April 2, 2009

Geithner’s Non-Recourse Gift That Keeps on Giving to Bill Gross


Treasury's troubled-asset plan might be boon for Pimco
Bloomberg (02 Apr.) The U.S. Treasury's plan to cleanse banks of their troubled assets might result in a windfall for Pimco and other institutional investors. They might see annual returns of 20% on troubled mortgages bought at substantial discounts because the plan allows investors to borrow six times their investment with "nonrecourse" government-backed debt, Credit Suisse analysts said. "This is perhaps the first win-win-win policy to be put on the table," said Bill Gross, co-chief investment officer of Pimco. For the complete story go to:
http://www.bloomberg.com/apps/news?pid=20601208&sid=aKm0M7RHXDoQ&refer=finance

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