Fixed Income
Pimco Looks to Alternatives as Credit Market Nears Boiling Point
Bond giant hopes that its large restructuring team will give it an edge as more borrowers become distressed.
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Pacific Investment Management Co. has a decent record of betting on distress. Almost a decade ago, the firm managed to cope with the chaotic departure of its founder Bill Gross because of the fortune it made from snapping up cheap mortgage debt after the financial crisis.
Now, as the bond behemoth manages another awkward moment — confronted by choppy fund flows and returns — it wants to repeat the trick. This time it wants to take advantage of finance’s latest craze: private credit.