PIMCO is Pacific Investment Management Co., one of the world's largest investment firms
From a note to clients over the weekend:
- coronavirus outbreak likely to cause a relatively mild and short recession
- tight credit markets could worsen it
- Worst for the economy is yet to come
"We are concerned about potential cracks in the U.S. credit cycle
We believe this is a time to remain cautious on risk assets and focus on liquidity and capital preservation."