Animal Spirits Podcast Talk Your Book: Investing in Public and Private Credit
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Oct 6, 2025 Join Jason Duko, Executive Vice President and Portfolio Manager at PIMCO, as he shares insights on the current landscape of fixed income and credit markets. He highlights PIMCO's macro view on growth and inflation amid a challenging bond market. Duko explains why bonds are becoming attractive again and contrasts unsecured high yield with secured bank loans. He also delves into the impact of private credit on public markets and discusses the value in agency mortgage securities and private investment-grade debt funding AI infrastructure. A must-listen for investment enthusiasts!
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Bonds Are Back As A Portfolio Anchor
- Real bond yields have returned, restoring bonds' role in diversified portfolios.
- PIMCO sees attractive starting yields plus Fed cuts as a tailwind for fixed income returns.
Direct Lending Looks Crowded
- Private direct lending has seen record fundraising and tightening spreads.
- PIMCO views direct lending as offering limited relative value today due to competition and weaker structures.
Private Credit: Double-Edged Impact
- Private capital can reduce defaults by refinancing stressed borrowers and adding flexibility.
- That capital also pressures spreads and can degrade deal structures as managers rush to deploy.