PIMCO Accrued Interest Podcast: Lotfi Karoui on Private Credit and the AI Capital Expenditure Supercycle

On the PIMCO Accrued Interest podcast, Lotfi Karoui joins host Greg Hall to discuss topics related to private credit and the AI capital expenditure supercycle. The two note that current market focus on direct lending may overshadow future structural themes in credit markets, analyze cyclical pressures facing business development companies, mention that the AI capital expenditure supercycle, global energy reshoring, and a rebound in defense spending may test the market’s ability to absorb new issuances, and advise advisors to consider the diversification value of allocations to bonds and emerging markets.