Viewpoints

The Global Credit Outlook: Finding Opportunities in Public and Private Credit Amid an Uncertain Recovery

While valuations have risen from their March lows, dislocation has created compelling opportunities in both the public and private credit markets.

The COVID-19 pandemic has rattled global financial markets and disrupted traditional sources of credit market liquidity. And while credit valuations have risen from their lows in the initial weeks of the global health crisis, there are still opportunities to be found in the current market and those that will likely present themselves over the coming quarters. In the following Q&A, Mark Kiesel, CIO global credit, and Jamie Weinstein, head of corporate special situations, examine the global credit outlook.

Q: A lot has changed in just a few months, but it appears we’re on the road to recovery. Let’s start with a high-level overview. How would you assess the current state of the credit markets?

Log In Or Register
The Author

Mark R. Kiesel

CIO Global Credit

Jamie Weinstein

Portfolio Manager, Head of Corporate Special Situations

Related

Disclosures

IMPORTANT NOTICE

Please note that the preceding contains the opinions of the manager as of the date noted, and may not have been updated to reflect real-time market developments. All opinions are subject to change without notice.

All investments contain risk and may lose value.

Statements concerning financial market trends or portfolio strategies are based on current market conditions, which will fluctuate. There is no guarantee that these investment strategies will work under all market conditions or are suitable for all investors, and each investor should evaluate their ability to invest for the long term, especially during periods of downturn in the market. Outlook and strategies are subject to change without notice.

The COVID-19 crisis is represented by periods in February and March 2020, reflected by major market index drawdowns. The COVID-19 Crisis is ongoing and the noted time period is used to clarify the significant market movements during this period of the pandemic. The COVID-19 Crisis representation may not be reflective of the current market environments.

PIMCO as a general matter provides services to qualified institutions, financial intermediaries and institutional investors. Individual investors should contact their own financial professional to determine the most appropriate investment options for their financial situation. This material contains the opinions of the manager and such opinions are subject to change without notice. This material has been distributed for informational purposes only and should not be considered as investment advice or a recommendation of any particular security, strategy or investment product. Information contained herein has been obtained from sources believed to be reliable, but not guaranteed. No part of this material may be reproduced in any form, or referred to in any other publication, without express written permission. PIMCO is a trademark of Allianz Asset Management of America L.P. in the United States and throughout the world. ©2020, PIMCO.

CMR2020-0602-1204075