Pimco funds see outflows; Qwest $25-par senior notes tick up; Pebblebrook returns for more

By Christine Van Dusen

Atlanta, Sept. 29 – Funds continued to flow out of Pacific Investment Management Co. LLC (Pimco) on Monday as investors digested the news that the asset management company’s co-founder, Bill Gross, had left to work for Janus Capital Group.

Gross surprised the markets on Friday by announcing he would leave California-based Pimco, which manages $2 trillion in assets and has seen more than $10 billion flow out since the personnel change came to light.

“We’re seeing some of the Pimco funds dropping off, with an outflow of cash because of Gross leaving,” a trader said.

In other news on Monday morning, Qwest Corp.’s new $500 million issue of 6 7/8% $25-par senior notes due 2054 were trading at $24.40, following Friday’s low of $24.35.

The Monroe, La.-based telecommunications company has two 7% issues coming due in 2052, one in April and one in July. Both were recently spotted trading above par.

“I hear there could be a full calendar, but with the Qwest trading at these levels, we may let the secondary market firm up before we bring out new issues,” the trader said.

Meanwhile, Maryland’s Pebblebrook Hotel Trust detailed its sale of an additional $25 million of its 6.5% series C cumulative redeemable preferred shares at a liquidation preference of $25.00 per share, according to a company filing.

Wells Fargo Securities is the underwriter for the Securities and Exchange Commission-registered deal.

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