The Rising Risks In The Private Credit Lending Bonanza | Andrzej Skiba
Finally, you can easily access Bitcoin in a low-cost ETF with the VanEck Bitcoin Trust (HODL). Visit https://vaneck.com/HODLFG to learn more. VanEck Bitcoin Trust (HODL) Prospectus: https://vaneck.com/hodlprospectus/ __ Follow VanEck on Twitter https://twitter.com/vaneck_us Follow Jack Farley on Twitter https://twitter.com/JackFarley96 Follow Forward Guidance on Twitter https://twitter.com/ForwardGuidance Follow Blockworks on Twitter https://twitter.com/Blockworks_ __ Use code FG10 to get 10% off Blockworks’ Digital Asset Summit in March: https://blockworks.co/event/digital-asset-summit-2024-london __ Timestamps: (00:00) Introduction (00:50) What Is Private Credit? (07:51) Private Credit Is Doing The Riskiest Deals In Leveraged Finance (16:04) How Will Private Credit Perform If Defaults Pick-Up? (Very Little Data In Previous Cycles Because The Asset Class Has Grown So Much) (19:24) Private Credit Is Very Illiquid (20:54) Debt Covenants In Private Credit Are, Admittedly, Usually Very Strong (26:31) VanEck Ad (27:14) Interplay Between Private Credit and Rest of Fixed Income Universe (32:35) Private Equity Is Using Private Credit To Pay Itself Via Dividend Recaps (35:13) Private Credit Is Refinancing Some Of The Riskiest Deals In Leveraged Loan Market, Which Perhaps May Be Bullish For Leveraged Loan (& High-Yield Bond) Market (38:00) Default Outlook In High-Yield Bond And Leveraged Loan Market (43:09) Moderately Bullish View On Duration (I.e. Rates) (58:43) Maturity Wall High-Yield Bond Is Very, Very Termed Out (01:02:56) Opportunities In Securitized Products Market Appear Interesting (01:04:57) Single Borrower Commercial Real Estate Loan Market Offers Interesting Opportunities To Fundamental Credit Investors (01:07:48) Most Common Investing Mistake In Credit: Herd Mentality __ Disclaimer: Nothing discussed on Forward Guidance should be considered as investment advice. Please always do your own research & speak to a financial advisor before thinking about, thinking about putting your money into these crazy markets.