This asset is a 1-in-5 year opportunity: Pimco CIO

Corporate credit poses a significant opportunity for investment due to aggressive easing by global central banks, according to Mark Kiesel, the chief investment officer of global credit at Pimco.

"We think that credit can basically offer near equity returns with about a third-to-half the volatility. We've seen three important developments this year with China, with commodities and with centrals banks – all three of those risk factors, we think have improved for the market tone," he told CNBC Friday.

"Credit is in a unique situation … it's basically a one in four or five year event where investors can earn near equity returns in the credit markets," he added.

Pimco headquarters in Newport Beach, California.
Scott Mlyn | CNBC
Pimco headquarters in Newport Beach, California.

The European Central Bank (ECB) delivered a surprise package of measures to kick start Europe's economy last week, cutting its main interest rates and expanding its massive bond-buying program. It also detailed new credit easing measures to try to boost the real economy in the region and Kiesel believes that other central banks could start to take note.

"Central banks all over the world, including the (Bank of Japan), the (Federal Reserve) and the ECB are learning that this trend towards further negative deposit rates is not working," he said.

He added these more targeted easing measures from the ECB would be very positive for corporate fixed income. He added the he believes that the spreads are 'too wide' relative to economic fundamentals and that's the reason for this "significant" opportunity.

"The U.S. credit market is probably the most attractive simply because the Fed has not subsidized that market and the yields are significantly higher," he added.

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