PIMCO is looking to the primary market to buy loans for its Waveland INGOTS collateralized loan obligation, so the manager can reduce cash balances and increase the weighted average spread. According to Fitch Ratings, which monitors the Waveland portfolio, PIMCO remains optimistic that it will be able to sell some low spread assets and reinvest in higher spread assets coming out in the new issue market. The CLO has $359 million invested and is composed of 93.5% loans and 6.5% bonds. A PIMCO spokesman did not return calls.
There is $37.7 million in the principal collection account, which has been received through prepayment, tenders and calls of eligible investments. PIMCO is currently in the process of selecting investments, notes Fitch. The weighted average rating is BB-, which is the same as at inception in June last year. The weighted average spread has declined since closing and is now 2.84%, relative to its trigger of 2.75%.