PIMCO Tactical Income Units Class A T.PTI

RE: quite the block going thru today

[elassowipeo]

Having not seen the transactional agreements I can't say wether on not Mr. Mova had any type of hold period or restrictions. We do know that the second performance adjustment cash payout was not done for failure to achieve "goals". It would be very unusual not to have some sort of restrictive sales clauses especially with the sizable cash consideration paid. However as most people would guess there are ways around everything. One aspect that the big banks have been getting into are structures designed to accomplish exactly a "sale" without being as sale. Often this is done to avoid triggering a taxable event while accomplishing what the same. Ie. Say your rich father-in-law has a million Inco shares and wants to sell to protect against the downside loss because even his crusty old noggin knows Inco at todays price is high, however this old coot's cost basis $5/ share and this guy keeps collecting Canadian Tire money so there is no way he will happily pay Ottawa the huge capital gains. So he goes to Mr. Investment Banker. Dad gives Banker the shares, Banker records on their books they owe Dad 1 million Inco shares, Banker then sells the shares to whomever. Now neither Banker or Dad actually have the shares, but Dad is recorded legally as owning them, while the Banker is short/not long. Dad effectively is still the owner for taxable purposes and has an IOU from the Banker to that effect, Dad also has the proceeds from the Inco sale in his account but in T-bills or whatever less of course the Bankers' modest fee for their efforts. Given RBCs distinctive involvement with PTI they might be doing something like this. However this is just one of many different legal examples. At any rate it would be very unusual for 12/14 85% of the short position to be established in 1 2 week period and right before a large stock price melt down.