] has made a lot of money making bets on agency MBS, the same kinds of securities the Bond King has helped the Fed purchase in quantitative easing plays, according to Reuters
. The newswire notes that in December 2008, the Fed hired Pimco, along with three other big Wall Street firms, to implement enormous purchases of agency MBS to keep interest rates low and spur the U.S. economy. It also reports that over the next few years, Pimco repeatedly invested heavily in those same securities - far more than other big investors, even considering its size. Ultimately, Reuters
estimates that the mortgage bets Pimco made in 2009 and 2012 - when Fed buying was heavy - generated for the Total Return Fund
gains of at least $10 billion.
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