Uncovering ‘Diamonds in the Rough’ in Today’s Credit Markets

Uncovering ‘Diamonds in the Rough’ in Today’s Credit Markets

Key Points:

· There are still good opportunities for yield and total return in the credit markets, but there has been a shift in where and how investors can find them.

· The credit markets have had a strong run since the market bottomed in 2009. Many investors searching for income have moved into riskier assets.

· A "diamond in the rough" is a credit that is under-covered, or not actively followed or researched by many investors. At PIMCO, we identify these opportunities through our top-down and bottom-up investment process.

· We’ve identified a number of sectors that appear poised for above-average growth. Housing is at the top of the list, and one of the few bright spots in the U.S. economy. Energy is another industry in which we’re seeing opportunity, and we are also bullish on select credits in emerging economies.

http://www.pimco.com/EN/Insights/Pages/Uncovering-Diamonds-in-the-Rough-in-Todays-Credit-Markets.aspx