Pimco Steps Up Distressed Bet With Another $3 Billion Fund

  • Latest pool will focus on leveraged loans, junk bonds, CLOs
  • As firms vie for cash, pension official ‘swamped with offers’
Photographer: Brent Lewin/Bloomberg
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Pacific Investment Management Co. is seeking to raise another $3 billion for a distressed credit fund as the rush to capitalize on dislocations in the fixed-income market grows.

Pimco’s latest money pool -- Distressed Credit Opportunities Fund III -- will invest in public market securities, including corporate credit, according to documents from a Fresno County Employees’ Retirement Association meeting this month. The fund, dubbed Disco III, will target leveraged loans, high-yield bonds and collateralized loan obligations.