Pimco Seeks Real Opportunities in Spain

14/03/2014 – Expansion

Pimco, the largest fixed income manager in the world, is exploring Spanish market in search of both credit portfolios and other assets, including property. The company operates on behalf of equity fund Bravo that awaits any real estate investment opportunity. “We believe that the prices have reached the rock bottom level and although the housing stock is still in excess, we reckon the prices will stabilize in 2015 and 2o16. ” That is why Pimco pursues at strenghtening ties with Sareb.

Except for Spain, where Pimco invested into a Socimi of Grupo Lar that became listed few days ago, the company sees great potential in peripheral countries and in Germany. (…).

“Debt constitutes considerable part in all our portfolios and, in fact, we attended a Treasury bill tender last week.” says Nicola Mai, company´s manager who also points out support at debt issues of the Madrid´s Community, Galicia, Aragon and Castilla-La Mancha . (…).

Additionally, Pimco makes great profits from subordinated debt and preferred stock of BBVA, Bankia or Sabadell, while it does not show much interest in senior debt, nor in Spanish corporative debt (…).

Mai notices that “Spanish financial system is already improving and the stress test by Oliver Wyman was quite strict.” (…). Despite that, the executive does not foresee credit granting to firms and families before 2015. (…).



Original article: Expansión (Ana Antón)

Translation: AURA REE