Pimco’s Stracke Says Some Complicated Debt Echoes Subprime MBS

Dan Stracke, president of Pacific Investment Management Co., said investors are not being adequately compensated for the risk involved in purchasing collateralized fund obligations and similar complicated debt products. Stracke did not specify which products pose the greatest risk or provide metrics for what constitutes adequate compensation. PIMCO is one of the world's largest bond managers.

Next story