Latest news with #PramolDhawan
CNBC
25-04-2025
- Business
- CNBC
'Sell America' trade is a 'paradigm shift', says PIMCO's Pramol Dhawan
Pramol Dhawan, PIMCO Head of Emerging Markets portfolio management, joins 'Closing Bell Overtime' to talk investing opportunities outside of U.S.
Bloomberg
15-04-2025
- Business
- Bloomberg
Pimco Cuts Turkey Bet as Politics Vie With Sky-High Yields
Pacific Investment Management Co. trimmed its holdings of Turkish bonds last month amid the selloff sparked by the arrest of President Recep Tayyip Erdogan's top political opponent. 'We are still positive on Turkey but our position is smaller,' said New York-based Pramol Dhawan, head of emerging-markets team at the $1.95 trillion money manager. The political turmoil was 'destructive for international investor confidence and it's destructive for the local institutions in Turkey.'
Zawya
03-04-2025
- Business
- Zawya
PIMCO steps up private lending to emerging market governments
LONDON - Bond giant PIMCO has privately lent nearly $6 billion to emerging market borrowers, mostly governments, this year alone, securing higher returns and better lender protections, its head of emerging markets portfolio management said on Wednesday. That is already nearing the roughly $8.5 billion PIMCO lent last year in 27 deals, Pramol Dhawan told Reuters, out of a total of around $25 billion it has provided in recent years. For emerging markets wary of being caught out by unfavourable changes in broader sentiment, private credit - which is also booming in developed economies - is seen as a more flexible but also less visible way to borrow. Countries PIMCO has lent to include Panama, the Dominican Republic, Saudi Arabia and Qatar, Dhawan said on the sidelines of a conference in London. The asset manager lends through loans or private bonds as well as trades where PIMCO buys existing public bonds at a discounted price that is not disclosed, Dhawan said. The firm prefers lending to borrowers with low investment-grade or high sub-investment grade ratings, he added. "We've got both inflows as an asset manager, and we have a large private credit team. We can leverage those two together, find bespoke solutions," Dhawan said. He said PIMCO could secure a 150 basis-point pick up relative to public investment-grade bonds from the same borrowers, while for the high-quality end of the high-yield market, that can reach as high as 300 bps. The other advantage of the off-market deals is that PIMCO can write its own lender protection terms known as covenants, which offer it more protection than those on public deals. Emerging market governments were choosing to pay up for the private debt to secure optionality, particularly following the experience of the COVID-19 pandemic where some emerging markets, especially smaller, riskier frontier markets, were locked out of capital markets, Dhawan said. Some issuers also do not want to mark down their Eurobonds with a public debt sale, he added. Giving the examples of Panama and Egypt, Dhawan said the higher-cost private credit extension was a very small share of their debt stack, however, at around 3%. Demand to lend to investment-grade governments in this way was coming predominantly from insurers, Dhawan added. "Pretty much every U.S. insurance company that we pitch this to is like: sure. Why not?," he said, as they grow worried about U.S. equity market volatility. (Reporting by Yoruk Bahceli, Additional reporting by Marc Jones; Editing by Dhara Ranasinghe and Alison Williams)
Reuters
02-04-2025
- Business
- Reuters
PIMCO steps up private lending to emerging market governments
LONDON, April 2 (Reuters) - Bond giant PIMCO has privately lent nearly $6 billion to emerging market borrowers, mostly governments, this year alone, securing higher returns and better lender protections, its head of emerging markets portfolio management said on Wednesday. That is already nearing the roughly $8.5 billion PIMCO lent last year in 27 deals, Pramol Dhawan told Reuters, out of a total of around $25 billion it has provided in recent years. Get a look at the day ahead in U.S. and global markets with the Morning Bid U.S. newsletter. Sign up here. For emerging markets wary of being caught out by unfavourable changes in broader sentiment, private credit - which is also booming in developed economies - is seen as a more flexible but also less visible way to borrow. Countries PIMCO has lent to include Panama, the Dominican Republic, Saudi Arabia and Qatar, Dhawan said on the sidelines of a conference in London. The asset manager lends through loans or private bonds as well as trades where PIMCO buys existing public bonds at a discounted price that is not disclosed, Dhawan said. The firm prefers lending to borrowers with low investment-grade or high sub-investment grade ratings, he added. "We've got both inflows as an asset manager, and we have a large private credit team. We can leverage those two together, find bespoke solutions," Dhawan said. He said PIMCO could secure a 150 basis-point pick up relative to public investment-grade bonds from the same borrowers, while for the high-quality end of the high-yield market, that can reach as high as 300 bps. The other advantage of the off-market deals is that PIMCO can write its own lender protection terms known as covenants, which offer it more protection than those on public deals. Emerging market governments were choosing to pay up for the private debt to secure optionality, particularly following the experience of the COVID-19 pandemic where some emerging markets, especially smaller, riskier frontier markets, were locked out of capital markets, Dhawan said. Some issuers also do not want to mark down their Eurobonds with a public debt sale, he added. Giving the examples of Panama and Egypt, Dhawan said the higher-cost private credit extension was a very small share of their debt stack, however, at around 3%. Demand to lend to investment-grade governments in this way was coming predominantly from insurers, Dhawan added. "Pretty much every U.S. insurance company that we pitch this to is like: sure. Why not?," he said, as they grow worried about U.S. equity market volatility.
