(Bloomberg) -- Pimco is gearing up for a junk bond binge -- or at least opening the door to that possibility. The Pimco Total Return Fund, Pimco's flagship bond fund, will be permitted to invest up to 20% of the Fund in junk bonds beginning on June 13, up from 10% currently.

The Fund's current allocation to junk bonds is only 2.5%, so the new 20% ceiling would be a monster eightfold increase in the Fund's allocation to junk bonds if fully utilized. 

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