Pimco could withstand extra $300-$350 bln outflows over 2 yrs -Morningstar, The Edge calls Spinoff
Nov 11, 2014
By Jennifer Ablan, Editor, US Investments at Reuters. Pimco is struggling to stem redemptions after the unexpected departure of co-founder Bill Gross on Sept. 26, an event that has triggered another round of speculation in the bond market over leadership stability and a possible separation from its parent Allianz SE.
Ryan Mendy, chief operating officer of the Edge Consulting Group, a research firm that focuses solely on spinoffs and special situations, said the outflows and organizational changes are weighing on Pimco’s brand. “We still maintain a view that Pimco should be spunoff into a separate entity,” Mendy said. “Without a Bill or Mohamed (El-Erian) at the helm…