Pimco Says Private Credit Is Overvalued as Complacency Spreads
- Direct lending offers half the premium that Pimco deems fair
- Core strategies CIO Mittal likes asset-based loans, mortgages
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Current private debt returns fail to justify the growing risk, according to Pacific Investment Management Co.
“Fundamentals are deteriorating in more levered portions of the credit markets,” said Mohit Mittal, chief investment officer for core strategies at Pimco. “You’re seeing more complacency, so you have to be very thoughtful — you have to be very careful.”