Pimco Purchases Part of Deutsche Bank’s Distressed Loan Pool (1)

Pacific Investment Management Co. bought part of an $800 million portfolio of sub-performing commercial real estate loans from Deutsche Bank AG, the largest pool marketed since the Covid-19 pandemic sparked a surge of distressed property debt, according to people with knowledge of the deal.

Pimco bought “sub-performing loans at a discount to par as part of an $800 million loan pool being sold by a large international bank,” Devin Chen, a commercial real estate portfolio manager, said in a note published Thursday.

Specific terms of the sale and names of other buyers weren’t disclosed in the note. Deutsche Bank ...