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Pimco Squares Up for a Bareknuckle Fight in Private Credit
”Pacific Investment Management Co. has been one of the loudest prophets of doom on private credit in recent months. Now it’s saying cracks in the red-hot asset class could appear as early as this year — and that it’s poised to use roughhouse tactics more common to hedge funds to grab bargains.”
Pimco has a history in distressed credit that, in fact, goes back to Bill Gross' time.
During the GFC 2008-09, Pimco loaded on distressed residential MBS under the initiative of a guy names Ivascyn - he hired 200+ mortgage specialists to go over many residential mortgages one-by-one to pick the better ones. In fact, that may have started Gross vs Ivascyn friction/rivalry at Pimco, and we know how that went. So, I won't be surprised by its plans for private credit. I always keep some exposure to Pimco funds - PONAX / PIMIX, PDI, PDO, PAXS.
But distressed investing is risky and Pimco has gotten burned with some Argentina and East European credits.
The article is interesting but it seems very hard for us mere mortals to make sense of which PIMCO fund might be getting involved, if any. All this stuff will probably go to their biggest customers in private vehicles.
@Yogibearbull, how can you tell all the PIMCO funds apart? Did you get PDI and PDO at a discount?
Comments
During the GFC 2008-09, Pimco loaded on distressed residential MBS under the initiative of a guy names Ivascyn - he hired 200+ mortgage specialists to go over many residential mortgages one-by-one to pick the better ones. In fact, that may have started Gross vs Ivascyn friction/rivalry at Pimco, and we know how that went. So, I won't be surprised by its plans for private credit. I always keep some exposure to Pimco funds - PONAX / PIMIX, PDI, PDO, PAXS.
But distressed investing is risky and Pimco has gotten burned with some Argentina and East European credits.
@Yogibearbull, how can you tell all the PIMCO funds apart? Did you get PDI and PDO at a discount?
PONAX / PIMIX - OEF; multisector
PDI - Old-style perpetual CEF; leveraged
PDO, PAXS - Newer term-structure CEFs with finite lives; leveraged