Pacific Investment Management Co. is leaving the American Securitization Forum, an offshoot of SIFMA that represents underwriters and holders of securitized debt. The bond fund behemoth cited what it believed was a lack of advocacy on behalf of the organization’s money manager members as the reason.
Specifically, PIMCO made the decision to leave after the American Securitization Forum declined to issue a statement about investors’ views on the nationwide foreclosure settlement earlier this month by five banks, Bloomberg reports, citing two people with knowledge of the matter.
According to the news service, PIMCO, manager of the world’s biggest bond fund, “informed ASF executive director Tom Deutsch of its decision in early February, said the people, who requested anonymity because the talks were private. The episode underscored Pimco’s concern that the trade group doesn’t advocate for debt buyers as well as banks that underwrite mortgages, the people said.”
PIMCO’s issue with he settlement appears to be the associated costs that it says will be passed along to its shareholders.