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00:02PIMCO Chief Investment Officer Dan Iverson warned Thursday that the rapid expansion of
00:07complex credit structures resembles the buildup ahead of the global financial crisis,
00:12according to Bloomberg. Speaking at a press briefing, Iverson said,
00:16PIMCO is now monitoring the trend after years of seeing little reason for alarm.
00:21He expressed concern that rating companies may be assigning overly generous credit grades to
00:25structured securities by placing too much weight on guarantees. Iverson said the surge in capital
00:31needs to finance artificial intelligence and energy infrastructure will intensify efforts
00:36to transform risky debt into investment-grade securities. Iverson warned that leverage is
00:41rising in the ETF industry, where retail investors can access products offering double or triple
00:47the daily return of certain assets. He warned that complex financial structures are emerging
00:52at an aggressive rate with more exotic collateral. For all things money, visit Benzinga.com.
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