Assuming we head into next week and the Total Return strategy begins to see signifcant outflows it seems pretty clear what happens to the mutual fund. PIMCO recieves notice of redemption request and if cash is availible they send cash out to satisfy the request. If cash is not availible the may need additional time to liquidate securities and then they send out cash once securities are liquidated.
What happens for the ETF (BOND) though? Since every trade needs to have an offsetting counterparty how does the ETF grow/redeem its asset base? Is there some underwriter that is constantly trading the security ready to meet supply/demand and deliver additional assets to PIMCO to invest or request cash to raised?