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(Reuters) – Pacific Investment Management has been hired to advise the U.S. government on the value of $118 billion of assets guaranteed in the bailout of Bank of America Corp (BAC.N), Bloomberg said, citing two people with knowledge of the decision.

Pimco, the world's biggest bond investment manager, will evaluate Bank of America's holdings, including securities backed by residential and commercial loans, to help determine the company's losses, the agency reported.

The assignment from the Federal Reserve, and a similar job related to a federal guarantee of $80 billion of credit union deposits, occurred after the firm raised $3 billion for a distressed credit fund to invest in mortgage-backed securities, it said.

On January 16, the government, which had already given Bank of America $25 billion in October under theTroubled Asset Relief Program (TARP), agreed to inject $20 billion more, and to share in losses on $118 billion of residential and commercial mortgages, derivatives and corporate debt.

Pimco could not be immediately reached by Reuters for comment.

(Reporting by Ratul Ray Chaudhuri in Bangalore; editing by Simon Jessop)