Merrill Brokers Push Issuers On Auction Rate Securities

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More than 300 Merrill Lynch brokers have emailed Pimco urging the fund manager to redeem its auction rate securities, Bloomberg is reporting. As regular readers of DealBreaker know, Merrill brokers have been pressing financial firms that issued auction rate securities to bail out customers who bought the now frozen securities.
The email takes a harsh tone, telling Pimco that its executives may :no longer be welcome in our offices" unless they redeem the securities. Blackrock, which is 49% owned by Merrill, has also been pressured by Merrill brokers.
Pimco, which is owned by Munich-based Allianz, SE has taken the view that it is not in its own investors interest to redeem the auction rate securities. It was the third largest mutual fund issuer of auction rate preferred securities. BlackRock, the second largest issuer, has announced redemptions of about 25% of its auction rate securities, trailing behind redemptions by Nuveen Investments, Eaton Vance and Neuberger Berman.

Merrill Brokers Press Pimco, BlackRock to Buy Auction-Rate Debt
[Bloomberg]

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