Gross, Fuss air views on GSE deal | FT Alphaville

Gross, Fuss air views on GSE deal

Two of the biggest US bond investors said they would get involved in a capital raising by US mortgage giants Fannie Mae and Freddie Mac as long as the US Treasury participates in the new deals, reports Reuters. But Bill Gross, chief investment officer at Pimco, and Dan Fuss, vice chairman of Boston-based Loomis Sayles, disagree on what shape any deal with Treasury should take, according to separate interviews on Friday. Gross would be drawn to a straight preferred stock offering similar to securities sold by Fannie and Freddie in raising capital this year and last, while Fuss wants an offering of convertible debentures. Gross said last week he doesn’t believe a bail out by Treasury is imminent.