Pimco takes dominant position in UK mortgage market

By Owen Sanderson
31 Oct 2019

The market for legacy UK and Irish mortgages is large and diverse, but it has one monster buyer, Pimco. The California-based bond investing giant has bought bonds backed by more than £12bn of loans from the UK government’s bad bank in the last two years, almost all of which went into its $75bn Income Fund, writes Owen Sanderson.

The investment house has a unique advantage compared with most buyers of legacy portfolios — unlike the private equity and hedge funds it competes with for assets, it buys mortgage pools without external leverage.

Most of the buyers for legacy mortgage pools are private equity firms or hedge ...

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