PIMCO President Sees Opportunity, Caution Ahead

Core Viewpoint - The credit markets are showing a diverging picture, with strong investment-grade borrowers funding AI data centers while speculative or "zombie" firms struggle under high interest rates [1] Group 1: Credit Market Dynamics - Strong investment-grade borrowers are successfully financing AI data centers [1] - Speculative or "zombie" firms are facing challenges due to high interest rates [1] Group 2: Default Cycle Expectations - The default cycle is expected to continue but remain contained [1]