The sector had just gotten stupidly cheap. And on any kind of loss-adjusted basis, stuff is still really cheap. If you didn’t know about the last few months, you’d never know how it’s gotten here. You can run some pretty draconian scenarios and get awfully high yields still.

You’ve seen some healing, you’ve seen risk-taking come back, you’ve seen balance sheets improve. Just the fact that stock markets are up as much as they are, you’ve recreated a tremendous amount of equity in the world, so I think you’ve started to see people in a position where they can actually put funds to work.
—Scott Simon of Pimco