Financial Plumbing to Improve

In an article originally published in the Financial Times on November 4, 2008, Mohamed El-Erian, PIMCO's co-CEO and co-chief investment officer, offered the following credit market forecast:

  • Look for an accelerated unclogging of the financial system's plumbing, including the commercial paper market.

  • Look for a measured yet notable recovery in bonds and mortgages supported by the government's bailouts.

  • Do not look for a generalized, quick and sustained recovery in all risk assets.

For the full text of "Pipes Are Being Unclogged but the All-Clear is a Long Way Off," please click here.