Pimco took part in Deutsche Bank bond offerings: source
By Jennifer Ablan
NEW YORK (Reuters) - Pacific Investment Management Co, which oversees more than $1.5 trillion in assets under management, took part in Tuesday's $1.5 billion Deutsche Bank AG (DBKGn.DE: Quote) bond offering as well as a $3 billion bond deal on Friday, a source familiar with the matter told Reuters on Wednesday.
Pimco, a unit of financial services provider Allianz SE (ALVG.DE: Quote) and one of the largest asset managers in the world, was said to be a major investor in both bond offerings, the source added. A spokeswoman for Pimco declined to comment.
Deutsche's bond spreads have been under pressure since September, when the U.S. Department of Justice asked the bank to pay $14 billion to settle an investigation into its selling of mortgage-bond securities.
But after raising $4.5 billion over two days, both times investor-initiated, the bank instilled some confidence that it is making progress in putting some problems behind it.
Deutsche paid a new-issue concession of around 50 basis points on Friday's deal, which was a chunky premium compared with its outstanding bonds.
But it was broadly in line with where its paper was trading after the sell-off occasioned by the Justice Department request.
Tuesday's self-led tap of its 4.25 percent October 2021s priced at 100.263 and a spread of 290 basis points over Treasuries for a yield of 4.191 percent, offering investors a premium of around 25 basis points.
The bond that priced Friday, which was sold to a limited number of investors, had rallied up to 40 basis points in secondary markets after clearing at 300 basis points over Treasuries. Continued...