Investors underestimate the hazards in private debt, according to Pacific Investment Management Co. “There’s a lot of additional credit risk that people are often taking in some of these private situations that you kind of turn a blind eye to,” Christian Stracke, the $2.3 trillion asset manager’s president, tells Bloomberg News’ James Crombie and Bloomberg Intelligence’s Noel Hebert in this episode of the Credit Edge podcast. “There is a fairly large overhang of problem loans that were made in years earlier this decade that will take years to burn through,” he adds. They also discuss deteriorating debt underwriting standards in the technology sector, Europe’s big defense investment opportunity and the “sell America” trade.

<p>Investors underestimate the hazards in private debt, according to Pacific Investment Management Co. &ldquo;There&rsquo;s a lot of additional credit risk that people are often taking in some of these private situations that you kind of turn a blind eye to,&rdquo; Christian Stracke, the $2.3 trillion asset manager&rsquo;s president, tells Bloomberg News&rsquo; James Crombie and Bloomberg Intelligence&rsquo;s Noel Hebert in this episode of the Credit Edge podcast. &ldquo;There is a fairly large overhang of problem loans that were made in years earlier this decade that will take years to burn through,&rdquo; he adds. They also discuss deteriorating debt underwriting standards in the technology sector, Europe&rsquo;s big defense investment opportunity and the &ldquo;sell America&rdquo; trade.</p>

The Credit Edge reviews the top credit news of the week and looks at the week ahead, with in-depth research of the most important corporate sectors, trends and themes. Analysis of specific corporate bonds and credit default swaps is backed by Bloomberg Intelligence's robust data sets and indexes.

<p>The Credit Edge reviews the top credit news of the week and looks at the week ahead, with in-depth research of the most important corporate sectors, trends and themes. Analysis of specific corporate bonds and credit default swaps is backed by Bloomberg Intelligence's robust data sets and indexes.</p>

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Pimco’s President Says Private Debt Investors Are Blind to the Risks 

https://api.omny.fm/orgs/e73c998e-6e60-432f-8610-ae210140c5b1/clips/fe7c3b96-c525-4a4e-851a-b3e10149d98c/transcript