UJB - Straight From PIMCO: Dislocations In Corporate Credit Markets
Originally recorded April 6, 2020
First, we have the crippling global pandemic that we're all struggling with, and second, a concurrent collapse in oil prices. The result of this has been a swift and broad-based repricing of risk across all the capital markets, across all sectors, asset classes and geographies.
Some of the most severe impacts have been in corporate credit markets. In the best of times, corporate credit, particularly in the below investment grade space, is relatively illiquid, but now things have turned extremely illiquid resulting in market dislocations across different types of assets.