Daniel Ivascyn rode a big trade to the top of the bond market universe: speculative mortgage debt he picked up cheaply in the wake of the Great Financial Crisis. It made a fortune and, in turn, made everyone forget the messy departure of his predecessor at the helm of Pacific Investment Management Co., Bill Gross.
Now, more than a decade later, Ivascyn, Pimco’s chief investment officer, is at a critical juncture. Its $117 billion Pimco Income Fund, the world’s largest actively managed bond fund, has begun to lag its very performing peers and investors, burned by a brutal bond market wipeout in 2022, are losing patience. They pulled $23 billion from the fund last year, the most since its inception in 2007.
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