| |||||||||||
| |||||||||||
 There was lots of head scratching Wednesday night over why bond giant Pacific Investment Management Co. LLC wasn't included in the list of managers for the Public-Private Investment Program, particularly after its chieftain Bill Gross came out as an early backer of the plan to help get toxic assets out of the banking system sooner rather than later. The world's largest bond fund said it pulled out of the running to be a manager back in June but isn't saying exactly why, with a spokesperson saying only, "As a result of uncertainties of the design and implementation of the program, Pimco withdrew its application to serve as a manager for the PPIP in early June." Since it's still waist-deep in many of the government's other alphabet soup of programs designed to get credit flowing again, Pimco was only willing to hint that it didn't think Treasury knew what it was doing when it came to running the program. And when billions of dollars are on the line, uncertainty is never a good thing. The fact that the program's getting vastly scaled down to around $40 billion from the $1 trillion figure bandied about when the PPIP was first announced may help with that. The thumbs-down from Pimco is yet another hurdle that the PPIP will have to jump to be effective. The financial firms it's supposed to be helping are already wary of participating for fear of having a stigma attached to them by it, particularly the firms that only recently finished repaying Troubled Asset Relief Program money. The nine funds selected to participate in the PPIP are AllianceBernstein LP and its subadvisers Greenfield Partners LLC and Rialto Capital Management LLC; Angelo, Gordon & Co. and partner GE Capital Real Estate; BlackRock Inc.; Invesco Ltd.; Marathon Asset Management LP; Oaktree Capital Management LP; RLJ Western Asset Management LP; the TCW Group Inc.; and Wellington Management Co. LLP. (The Deal Pipeline subscribers can read the full story here.) - George White See The Deal Pipeline story on PPIP (subscription required) See Dealscape post on Pimco/PPIP
CategoriesPrivate capital video
Categories
Blog roll
Archives
| |||||||||||
|
|
|
|
|
©Copyright 2009, The Deal, LLC. All rights reserved. Please send all technical questions, comments or concerns to the Webmaster.
