Pimco's Crescenzi Warns Leveraged Loans Are Raising Red Flags for Investors

The video discusses concerns about the leveraged loan market, emphasizing that while there are risks, they are not systemic. It highlights the importance of careful investment strategies, especially in a low-interest environment where investors are reaching for yield. The video advises caution and suggests focusing on creditworthy investments rather than following market trends late in an economic cycle.

What caution does the speaker advise investors regarding covenants in leveraged loans?

What are the two key messages the speaker conveys about indebtedness and investment choices?