In this episode, Lotfi Karoui, Multi Asset Credit Strategist and Co Head of Client Solutions and Analytics at PIMCO, joins Philipp Nowak, Credit Strategist, to unpack the changing dynamics across public and private credit markets.

They discuss how starting yield continues to be a powerful anchor for forward returns, why credit valuations look rich by historical standards, and what today’s elevated yield levels mean for potential returns. The conversation also dives into corporate credit fundamentals, highlighting differences between public markets and areas of stress emerging in parts of private credit.

Key topics include:

• Why yield remains a crucial buffer in today’s credit markets

• The relative appeal of credit vs. equities from a valuation perspective

• Where investors are truly compensated for liquidity - and where they aren’t

• Structural challenges facing private credit and direct lending

• How AI is reshaping credit fundamentals

• Why selectivity and active management matter more than ever

Listen in for a clear framework on how to think about public and private credit in the current environment, which is both more fragmented yet opportunity rich.

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