Pimco [profile] is a black cat and BlackRock [profile] is trying its best to avoid crossing paths with it. To avoid the losses Pimco experienced, BlackRock sold 70 percent of its holdings in bonds from billionaire Eike Batista's oil producer, OGX Petroleo $ Gas Participacoes, Bloomberg reporter Boris Korby writes.

Regulatory filings show the world's largest asset manager cut its holdings to $69 million. In the past six months through Match, Pimco increased OGX holdings of 2018 and 2022 securities from $170 million to $576 million, Korby writes. A halt on OGX's debt payments wouldn't look so pretty. It would nearly double the Banco de Galicia y Buenos Aires SA's $1.9 billion 2002 default.

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Edited by: Casey Quinlan


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