Pimco has issued a warning to investors, stating that the current credit market is not compensating them sufficiently for the risks involved. The firm highlights that an abundance of capital is chasing limited opportunities, which is leading to diminished returns. This situation is also causing the power dynamics to shift in favor of borrowers, resulting in weaker underwriting standards. Pimco's caution comes amidst a broader context where investors are seeking higher yields, potentially increasing the risk of unforeseen market events. Meanwhile, some investors note that they can earn 5.5% in a money market account, and there are well-run private credit and HML funds that yield high returns, making commercial real estate (CRE) equity opportunities less compelling.