What's Actually Going On With Private Credit | Odd Lots
The private credit market has grown enormously fast in recent years—so much so that by some estimates it's now bigger than the market for junk-rated corporate bonds. So what's driven all that growth? What impact has private credit had on other types of corporate debt? And why are there so many concerns around the space right now? In this episode we speak with John Sheehan and Craig Manchuck, two veteran portfolio managers for the strategic income fund at Osterweis Capital Management. We talk about the history of private credit before and after 2008, private credit's links with private equity and insurance, the prospect of higher defaults, and what to watch for right now. Watch Bloomberg Vodcasts: • Bloomberg Video Podcasts | Interviews & More Watch more Odd Lots episodes: • Odd Lots Bloomberg's Joe Weisenthal and Tracy Alloway analyze the weird patterns, the complex issues and the newest market crazes. Join the conversation every Monday and Thursday for interviews with the most interesting minds in finance, economics and markets. Join the conversation: discord.gg/oddlots Subscribe to Bloomberg Podcasts: https://bit.ly/BloombergPodcasts Check out more Odd Lots: • Odd Lots (Audio) Get the Odd Lots newsletter: https://www.bloomberg.com/account/new... And for all things Odd Lots, visit https://www.bloomberg.com/oddlots #Investing #Markets #Finance #Bloomberg #Podcast #OddLots Visit us: https://www.bloomberg.com/podcasts For coverage on news, markets and more: http://www.bloomberg.com/video Visit our other YouTube channels: Bloomberg Television: / @markets Bloomberg Originals: / bloomberg Chapters: 00:00:00 - Private Credit Competition 00:07:23 - Evolution of Credit Markets Post-2008 00:10:36 - Historical Roots: GE Capital and Early Private Credit 00:13:41 - Mezzanine Finance and Market Evolution 00:15:08 - Private Credit's Rapid Growth 00:18:07 - Insurance Companies and Fund Structures 00:21:58 - Competitive Market Dynamics 00:23:17 - Structural Problems with Retail Private Credit 00:27:30 - Fund Structure Comparison: PE vs Private Credit 00:30:33 - Gates and Redemption Management 00:35:29 - Precedent and Recovery Concerns 00:37:11 - Technology Sector and Asset-Light Lending 00:41:52 - Systemic Risk Assessment 00:45:43 - Fund's Private Credit Stance 00:48:50 - Conclusion and Macroeconomic Implications Watch Bloomberg Vodcasts: • Bloomberg Video Podcasts | Interviews & More Watch more Odd Lots episodes: • Odd Lots Bloomberg's Joe Weisenthal and Tracy Alloway analyze the weird patterns, the complex issues and the newest market crazes. Join the conversation every Monday and Thursday for interviews with the most interesting minds in finance, economics and markets. Join the conversation: discord.gg/oddlots Subscribe to Bloomberg Podcasts: https://bit.ly/BloombergPodcasts Check out more Odd Lots: • Odd Lots (Audio) Get the Odd Lots newsletter: https://www.bloomberg.com/account/new... And for all things Odd Lots, visit https://www.bloomberg.com/oddlots #Investing #Markets #Finance #Bloomberg #Podcast #OddLots Visit us: https://www.bloomberg.com/podcasts For coverage on news, markets and more: http://www.bloomberg.com/video Visit our other YouTube channels: Bloomberg Television: / @markets Bloomberg Originals: / bloomberg
