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Credit Where Credit Is Due: Four Common Misconceptions in Public and Private Credit Markets
Fear can trump discipline when markets become extremely volatile. In credit markets, the dramatic declines in the investment grade and high yield bond market so far this year understandably have unnerved many investors, and unfortunately, have given rise to potentially harmful misconceptions about risk and reward in the public and private markets. As valuations begin to look attractive again, we at PIMCO have identified what we have determined to be four prevalent misconceptions circulating in the market that, if embraced, could potentially lead to poor investment outcomes. Misconception #1: Returns in most public ... (full story)