September 4, 2008 / 6:41 PM / 11 years ago

Pimco's Gross says distressed mortgages attractive: report

NEW YORK (Reuters) - Distressed mortgage-related assets are attractive, the manager of the world’s biggest bond fund said on Thursday.

“We have been buying distressed mortgages and that’s attractive,” said Bill Gross, chief investment officer of Pacific Investment Management Co or Pimco, speaking on CNBC television.

The U.S. government’s willingness to support mortgage finance giants Fannie Mae FNM.N and Freddie Mac FRE.N is also a key factor influencing Pimco’s investment decisions, he indicated.

“Basically we are trying to anticipate what government officials and policymakers will do,” Gross said.

“You want to buy what they are going to be buying, hopefully over the next several months, and that’s to buy Fannie and Freddie mortgages,” he said.

Gross manages the $130 billion Pimco Total Return Bond Fund.

Reporting by John Parry; Editing by James Dalgleish

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