Fox Business Network’s (FBN) Senior Correspondent Charlie Gasparino reports the Securities and Exchange Commission’s (SEC) probe into PIMCO is, “ramping up,” and, “the SEC has been inside PIMCO’s office on a regular basis.” Gasparino also reports that, “PIMCO total return fund documents show that PIMCO is increasing various disclosures.”
On PIMCO’s total return fund:
“PIMCO apparently in this total return fund basically began reducing leverage, it is fairly significant if you look at the documents. They are taking down leverage; leverage is used to increase the fund’s performance. Clearly, Bill Gross made some of his money by using leverage but it looks like the firm is taking a different direction they’re reducing leverage. We should point out that they are reducing this leverage as a the Securities and Exchange Commission (SEC) is ramping up a probe on the total return fund with specific focus on an Exchange Traded Fund (ETF) that mimicked the total return fund’s purchase.”
On the SEC’s probe into PIMCO:
“The SEC has been inside PIMCO’s office on a regular basis. According to sources inside the company documents, PIMCO total return fund documents show that PIMCO is increasing various disclosures. One area where financial advisors are noticing increasing disclosure is in the amount of emerging market debt amid this probe. Advisors have been noticing other disclosure changes in these documents. This probe at the SEC is ramping up it is becoming more serious from what we understand. “
