PIMCO unveils bank debt fund

PIMCO is launching a bank capital securities fund in conjunction with family office Fleming Family & Partners (FF&P) to take advantage of new regulations implemented under Basel III.

The PIMCO Capital Securities fund will be managed by PIMCO’s executive vice president and head of European credit Philippe Bodereau, and will be domiciled in Dublin. The fund, which soft-launched on 16 May, will invest in high yield debt issued by banks, including contingent convertibles (CoCos) market, as well as existing tier one debt. The fund aims to exploit the opportunities created by Basel III, which it said will remove the tier one status from certain types of bank debt. FF&P, which provided the seed capital and contributed to the investment strategy, said the fund will exp...