Pimco plays emerging market via selling CDS

Pimco has become a major force in global emerging-market debt (EMD), but indirectly, as it seeks to profit from writing insurance on the bonds of sovereigns with large foreign-exchange reserves, says Emanuele Ravano, managing director in London. He says the firm has tripled its exposure to emerging markets since the 2008 crisis to around $170 billion. “We have the biggest relative position to emerging markets ever, relative to developed markets,” Ravano says. “Emerging markets have be…