Pimco Steers Clear of ‘Pretty Bad’ Private Credit Loans on Sale

Pacific Investment Management Co. is staying away from loans being put up for sale amid the tumult in the $1.8 trillion private credit market because they’re “pretty bad,” according to its president Christian Stracke.

As some funds look to offload assets to meet investor demand for redemptions, the prices being asked for the assets are still too high given the risk, Stracke said Wednesday in a Bloomberg TV interview. Pimco would need to see “high-teens” returns to get interested in what’s increasingly becoming a stressed- or distressed-type opportunity, he said.