US global bond specialist, PIMCO has set up an office in London, with the primary aim of improving communication with existing institutional European clients, but with the hope of building new business in the region. The firm currently manages US$1bn for European clients.

Joe McDevitt, executive vice president with PIMCO who will head the new office, and was formerly a managing director of Sal-omon Brothers Asset Management in London, says: We are put-ting a physical presence in Europe with the first priority to give our existing clients more contact with PIMCO during European time."

However the firm hopes that the office will help it win more business in Europe, particularly in view of Emu and its impact on the European bond market.

"We have a skill set at PIMCO from our successful management fixed income in the US market and we hope to be able to transport that to Europe over time as the market evolves.

"It will take time to resemble the US, but there will be a large capital market with various areas representing opportunities that will look quite like the States longer term.""