Pimco is also exploring options to use some of the bareknuckle methods of distressed investing — where funds buy into a struggling company’s debt and try to squeeze existing lenders — to shake up the more polite world of private credit, which usually prefers to resolve things behind closed doors. That threatens to expose direct lenders who’ve been valuing their loans too generously, a source of growing anxiety for financial regulators. The firm sparked uproar a couple of years back when it and a bunch of funds threw a $1 billion lifeline to ailing hospital staffer Envision Healthcare. The emergency refinancing, like Pimco’s later involvement in aerospace supplier Incora, left other lenders out in the cold and cemented a trend in distressed investing for so-called “creditor on creditor violence.” Stracke, who oversees Pimco’s operations outside the Americas and its credit research arm, says it’s looking at targeting private credit by dealing directly with a company’s private equity backer or negotiating “super senior loans.” Such moves often disadvantage other creditors, as with Envision and Incora. https://www.bloomberg.com/news/arti...pares-for-when-the-bubble-bursts?srnd=premium All of this is just another sign that there is too much liquidity in the system and institutional money is looking for the "extra yield"
%% NO wonder\ sounds like a figure of speech ''creditor on creditor violence.'' But a bankruptcy on Envision sounds like what the metals dealer does to a totaled car; takes his track hoe + smashes\mashes it down+ combines it with some other smash\mashes + ships it for a profit LOL. The good news is the bank + or insurance co gets some pennies on the dollar for the totaled wreck