Economics
Pimco's El-Erian Shuns Banks That Break His Rules
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As the world's biggest buyer in the $1.3 trillion market for developing-country debt, Mohamed El-Erian has the clout to criticize Wall Street investment banks that broker the deals. And El-Erian, 46, manager of Pacific Investment Management Co.'s $14.8 billion in emerging-market bonds, has been wielding his power with gusto.
In his monthly newsletter on Newport Beach, California-based Pimco's Web site, in public speeches and in news media interviews, he has railed against banks that he says are boosting fee income by increasing the size of new bond issues without regard for investor demand and are devoting more capital to in-house proprietary trading.