2/10/2025, 8:46:02 pm

PIMCO flags corporate loan market "cracks"

PIMCO President Christian Stracke highlights concerns in corporate direct lending due to borrowers requesting Payment-in-Kind (PIK) arrangements, where interest is deferred, warning of "cracks" in the sector. He contrasts this with asset-based finance, which remains a promising segment of private credit, citing a widening gap between the two sectors.