Here's one reason why: http://ift.tt/2gNNSA2
They used an odd lot strategy to goose returns. Like this:
For example, on March 9, 2012, PIMCO purchased an NA MBS odd lot at $64.9999 with a current face of $0.2 million. PIMCO then valued the position at the Pricing Vendor’s institutional round lot mark of $82.74585 (a 27% increase). This trade alone increased BOND’s NAV by nearly $0.02 per share in one day.
I thought this was an interesting illustration of how different fixed income is compared to the equity market.
I'm still confused how this works in an ETF, because someone should be able to trade the ETF for the basket of the underlying or vice versa. It seems like if they are cheating on the NAV, someone could make money off of Pimco.
Submitted August 23, 2017 at 11:34AM by ron_leflore http://ift.tt/2vfw47B
