Pacific Investment Management Co. (PIMCO) is taking a cautious stance on private credit, with President Christian Stracke indicating the investment firm is avoiding much of the loan supply currently coming to market.

The process of working through weaker assets in the sector is likely to extend over several years, particularly as investors continue to withdraw capital, Stracke told Bloomberg in an interview. The $1.8 trillion private credit market is facing a critical liquidity test as redemption limits and bankruptcies are cracking investors’ confidence. 

A considerable about of loans available in the private-credit market currently are “pretty bad” and are not priced at levels that are attractive for the firm, he added.

JPMorgan, BlackRock

As a result, JPMorgan Chase & Co. (NYSE:JPM) has started restricting lending to loans associated with software companies in its private credit funds, while Morgan Stanley (NYSE:MS) curbed redemptions after investors sought to withdraw nearly 11% of shares from its North Haven Private Income Fund.

BlackRock Inc. (NYSE:BLK) limited withdrawals from its $26 billion HPS Corporate Lending Fund after redemption requests surged to 9.3% of the fund's net asset value, and Cliffwater’s investor redemption requests from its $33 billion private credit flagship fund exceeded 7%, Bloomberg reported.

Following the turmoil, several investment firms have issued reports noting their thoughts on the current private credit landscape.

Fidelity Investments said in its most recent private credit market update that the industry remains a “compelling asset class,” despite recent headlines.

Meanwhile, private markets investment management firm Hamilton Lane (NASDAQ:HLNE) said it does not believe there is a private credit bubble in its most recent 2026 market overview.

"With the increased capital available, with the increase in market share, with the ongoing press about the pressures on private credit, the casual observer would think that yields and spreads of private credit over broadly syndicated loans were collapsing. That would be a completely incorrect assumption," Hamilton Lane wrote.

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