PIMCO said on Tuesday that this year’s banking turmoil has created opportunities for the U.S. bond giant to expand in areas which were previously the domain of regional banks.
This is leaving space to non-bank lenders such as asset managers and private equity funds to lend more and expand into areas such as car loans and mortgages, or financing the construction of buildings. PIMCO, which manages $1.8 trillion in assets, said it expects “increasingly attractive” opportunities in private markets in light of the changes in the banking sector.
The report came just as U.S. regulators were preparing new rules for banks that could require capital hikes of as much as 20%. Regulators, led by the Federal Reserve, are expected to unveil the proposed tougher requirements by the end of this month, a source told Reuters on Monday.