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Economic and Market Commentary

Unlocking Alternatives: PIMCO’s Edge in Private Credit

The ongoing tightening in credit conditions exacerbated by recent banking sector shockwaves continues to drive borrowers towards private credit markets. Watch as head of corporate special situations, Jamie Weinstein, explains how PIMCO’s private credit platform is well-positioned to capture the resulting opportunities over the long term.

Text on screen: PIMCO

Text on screen: PIMCO provides services only to qualified institutions and investors. This is not an offer to any person in any jurisdiction where unlawful or unauthorized.

Text on screen: What is PIMCO’s view on the effects of credit tightening on private lending markets?

Text on screen: Jamie Weinstein, Portfolio Manager, Head of Corporate Special Situations

Jamie Weinstein: Today, if you're a company that needs to come borrow, or if you're a private equity sponsor that needs to do a new buyout or M&A financing, or you're a company that has a refinancing need, the public markets, particularly below investment grade are closed right now in large part, and all you can do is turn to private markets.

Private markets lenders, many of them depend on leverage that comes from the banks, whether it's in the form of subscription lines for their funds, or it's other forms of warehouse financing or term financing, for their book to get to a levered yield. Well, that capacity, a lot of that is coming out of the system now.

And so those lenders are going to require higher rates of return and they're going to require tighter conditions on the documents when they step into those situations. So, all of that is to say, a pretty interesting go forward environment for making new loans.

Text on screen: Why is PIMCO well-positioned to take advantage of opportunities that arise in private credit markets?

It's the breadth and depth of the platform in terms of how we integrate our activities in public markets, where we have

B-roll: PIMCO trade floor

a team of credit research professionals across developed markets – U.S., Europe and Asia Pacific – who cover the broad waterfront. They cover all of these different industry verticals and they cover companies up and down the capital structure.

So when something becomes interesting, there's a dislocation in a sector or there's a specific issue inside of a company, or we're looking at a new private investment opportunity,

Chevron Spilt Screen – Text on left: PIMCO’s $1.8 trillion platform supports reputation as a reliable capital partner, B-roll on right: PIMCO global office building, Jamie trade floor

invariably, the size and scale of our platform and of that research team means we have a significant head start when we want to get involved in something.

And that speed advantage enables us to kind of control the outcome, to control the deal flow that we want to control, and step up and combine that with the size and scale of the capital that we can speak for

B-roll: PIMCO trade floor

to deliver whole solutions to companies or borrowers, and frankly create attractive risk opportunities for our clients.

Text on screen: For more insights and information, visit pimco.com

Text on screen: PIMCO

All $ referenced are in USD

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CMR2023-0501-2877056

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