Financial Engineering Is Resembling Pre-Crisis Era, Pimco Warns

The rapid expansion of complex credit structures is reminiscent of the buildup ahead of the global financial crisis, Pacific Investment Management Co.’s Dan Ivascyn warned.

The firm is now monitoring the trend after years in which it saw little reason for alarm, Ivascyn, Pimco’s chief investment officer, said at a press briefing Thursday.

Dan Ivascyn

Photographer: Kyle Grillot/Bloomberg

“Although we don’t see systemic risks today, we’re beginning to see the pace of financial engineering accelerate to a point where it bears watching the next few years,” he said.

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