Pimco makes big mortgage debt bet

Newport Beach, California-based Pacific Investment Management Co, known as Pimco, has switched gears to make a big bet on mortgage debt, almost tripling its holding of it to make up more than 60% of its $130 billion Pimco Total Return fund.

In May, Pimco also bought the mortgage-backed securities portfolio from Bank Hapoalim, Israel's biggest bank by assets, for $2.55 billion. Hapoalim, which is seeking to stem losses tied to the subprime collapse, will record a pretax loss of $870 million from t

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