Pimco Sees Credit Market Opportunities in Dealmaking Revival

Dealmaking may be off to a slow start, but Pacific Investment Management Co. foresees a revival and is getting ready to trade corporate bonds when it comes.

A rebound in debt-funded merger and acquisition activity would spur issuance in a market starved for supply, said Sonali Pier, who focuses on multi-sector credit opportunities at the $2 trillion asset manager. Investors can also generate significant returns in company debt when a buyer has to pay a premium to redeem bonds after an acquisition.

“Credit markets are certainly looking for additional new supply and with M&A to be one of ...