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Pimco Warned US Treasury That Russia Sanctions Will Hit Pensions

  • Firm held talks with the US Treasury ahead of new sanctions
  • Russia breached bond terms, triggering credit default swaps
The US Treasury has barring investors from buying Russian debt in the secondary market.

The US Treasury has barring investors from buying Russian debt in the secondary market.

Photographer: Joshua Roberts/Bloomberg

Pacific Investment Management Co. has warned the US Treasury about the fallout on investors from the strict sanctions that are pushing Russia toward default.

Executives at the asset management giant told the US Treasury about losses that US pension funds will face if fund managers are forced to write down their Russian holdings, according to people familiar with the matter. They have also made the point that a Russian default would allow President Vladimir Putin to keep foreign currency reserves that would have otherwise been paid to creditors, giving him more money for war efforts, said the people, who asked not to be identified because the matter is private.