If It's Not One Thing, It's Another...

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We learn today that PIMCO (rapidly becoming another Balcony favorite) was among the first ones to invest in distressed real estate mortgages to the tune of USD 3 bln, back in 2007. We can all imagine how this investement has performed: -33% since inception to be exact (they can claim of course that while their idea was spot on, their timing was slightly off).

What we found more interesting in the article though, was the analyst quoted saying that their only hope for some recovery rests with the Geithner plan boosting the value of these mortgage backed securities. Quick! Who was the first one to declare participation in the plan, literally minutes after its announcement? You guessed it: PIMCO "attracted by the potential double digit returns"! Well, if not in that fund, certainly in the other...
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