Pimco Emerging Market Bond Fund Hit By Russia Crisis, Options Wiped Out

scott

http://www.bloomberg.com/news/2014-12-16/russia-crisis-hits-pimco-fund-wipes-out-options-as-ruble-sinks.html

"Pacific Investment Management Co. (PEBIX) is facing mounting losses on its Russian bond holdings; almost every bullish ruble option registered in the U.S. has been made worthless; and foreign-exchange brokers in New York and London told clients yesterday they’re no longer taking ruble trades. Sergey Shvetsov, a first deputy central bank governor, expressed astonishment at the scope of the collapse during a business conference in Moscow yesterday."

Ouch:

"Pimco’s $3.3 billion Emerging Markets Bond Fund has been one of the hardest hit funds. It held $803 million of Russian corporate and sovereign bonds at the end of September, equal to 21 percent of total assets, an amount that’s more than double that of the benchmark it tracks, according to data compiled by Bloomberg. The fund has lost 7.9 percent in the past month, trailing 95 percent of its peers."

JohnChisum

Sounds like Pimco was going for a home run with such a large bet.

JohnChisum

Off the CNBC website, here is an article that lists the 25 US based funds with the highest exposure to Russia.

http://www.cnbc.com/id/102273812