Private corporate credit is vulnerable to higher interest rates or an economic slowdown, the firm added. What's more, less-liquid private credit is not offering high enough premiums for borrowers that lock in their investments. "The compensation for providing liquidity is declining across both public and private credit markets as more capital chases too few opportunities," CIO of core strategies Mohit Mittal explained. "New investments are entering at potentially unattractive valuations, with corporate spreads across public and private credit markets near record lows." Meanwhile, some corners of private credit are susceptible to an increased macro uncertainty.

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Persons: PIMCO, —, Mohit Mittal, that's, Mittal Organizations: Service