Public Credit Shows Resilience Amid Market Volatility

In this April 2025 chartbook, Mohit Mittal, PIMCO’s CIO of Core Strategies, assesses public corporate credit markets, emphasizing their strength and liquidity despite broader financial market stress.

• Liquidity Remains Intact: Investment-grade corporate bond markets continue to trade tens of billions daily with bid-ask spreads well below 2022 peaks, signaling stable liquidity conditions.
• Resilience vs. Private Credit: While BDCs and other private credit proxies have declined sharply, public investment grade and high yield bonds have remained relatively stable.
• Attractive Yields: Yields in both investment grade and high yield credit are above 15-year medians, offering equity-like return potential with lower volatility.

Explore the full chartbook to better understand how public credit can serve as a liquid, high-quality anchor amid uncertain macro conditions. How are you positioning fixed income in your portfolio?