PIMCO has received commitments of up to $1 billion to invest in jumbo mortgages as part of a conduit project which carries the working name of 'Project Bravo,' according to secondary market officials.
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One source who said he was briefed on PIMCO's plans contends, "They've already raised the $1 billion."
At press time PIMCO had not returned a telephone call about the matter.
With expectations rising that the White House and Congress will allow the GSE loan limit to fall to $625,500 by October, private equity and investment banking firms are looking to enter the space.
Just two jumbo mortgage bonds have come to market during the past 10 months. Both were issued by Redwood Trust.
