Investing in Private Credit

Mapping investment themes to sector views Under Over € Under Over Residential lending Strong housing fundamentals Focus on resilient seasoned loans PIMCO ● ● Specialty finance • Growing pipeline in secondary opportunities given balance sheet frictions ● New issuance pipeline slower post-COVID ● Consumer (marketplace, student, auto, receivables) Robust asset-based opportunities (SME, aircraft, NPL financing, etc.) Under Under Over Over Commercial real estate lending Lending opportunities much more attractive post-COVID ● Corporate lending Significant levels of dry powder have compressed returns in corporate direct lending ● Less competition is driving more lender friendly terms Robust pipeline in transitional lending ● At the same time, leverage levels have broadly increased as companies sought liquidity to navigate the lockdowns Focus on special situations with strong asset coverage As of 30 June 2021. Source: PIMCO. For Illustrative Purposes Only and Subject to Change. Forecasts, estimates and certain information contained herein are based upon proprietary research and should not be considered as investment advice or a recommendation of any particular security, strategy or investment product. There is no guarantee that results will be achieved. "Investment categories" represents PIMCO's view of private credit sectors. "Outlook Today" represents PIMCO's current views of opportunities in the categories identified over the next 12-18 months, and are subject to change. In addition, such outlook may be materially different over different time periods. Refer to Appendix for additional investment strategy, outlook and risk information. 6

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