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Pimco Warns Bond Investors Against Fleeing for Other Riskier Credit Markets

  • Investors may be misled on relative risk of credit, bank loans
  • Managers caution investors on floating rates, private credit

Pacific Investment Management Co., whose managers oversee $2 trillion in assets worldwide, warned bond investors against fleeing public markets for other credit arenas where they’re liable to misunderstand the risks. 

The selloff in the US investment-grade and high-yield corporate debt markets this year is leading to potentially “harmful misconceptions” about risk and reward, Pimco’s senior portfolio managers Mark Kiesel, Mohit Mittal and Christian Stracke wrote in a blog post Wednesday.