PIMCO was ahead of the QE game and then continued to double down once the Fed started buying agencies - making billions in the process. In December 2008, the Fed hired Pimco, along with three other big Wall Street firms, to implement enormous purchases of agency MBS to keep interest rates low and spur the U.S. economy. Over the next few years, Pimco repeatedly invested heavily in those same securities - far more than other big investors, even considering its size. Pimco's mortgage plays in 2009 and 2012 - when Fed buying was heavy - handed the firm and investors in the Total Return Fund a gain of $10 billion, excluding net investment flows, according to Reuters estimates. (VIEW LINK)
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