PIMCO, BlackRock Among First Fund Firms to Apply for Toxic Asset Program

PIMCO and BlackRock are two of the first mutual fund companies to sign up for the Treasury Department’s new program to purchase troubled assets—PIMCO as both a buyer and manager of debt and BlackRock only as a manager. Other fixed-income fund shops are likely to sign up as well, Geoff Bobroff of Bobroff Consulting told Dow Jones.

PIMCO and BlackRock also said they are considering launching mutual funds that will invest in the toxic assets.

The Treasury has committed to purchase troubled assets related to real estate held by mutual funds, banks, insurance firms, pension plans and individual retirement accounts. It will also loan money to private companies to purchase the securitized assets.