/institutional/perspectives/media/a-vast-market-in-private-credit

A Vast Market in Private Credit

Anne Walsh, CIO of Guggenheim Partners Investment Management, joins Bloomberg TV from the Milken Global Conference to discuss the implications of ongoing issues in fixed income and how capital rationing favors private credit.

May 01, 2023

 

 

Key Takeaways:

  • Capital will be rationed during an economic slowdown and credit contraction.
  • But banks, lenders, and investors should benefit from moving up in credit quality.
  • In private credit, investors have the ability to manage credit requirements and covenants, which should attract capital.
  • One example of capital rationing is disintermediation in the banking sector.
  • The First Republic failure shows that disintermediation remains a problem, but it is not likely systemic.
  • The Federal Reserve will likely hike this week, but it will be slow to start cutting.


Read Q2 2023 High-Yield and Bank Loan Outlook: The Pre-Recession Playbook for Up in Quality

 


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Learning from Turning Points in Monetary Policy

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Macro Markets Podcast 

Macro Markets Podcast Episode 51: What's Holding Up Inflation…And Other Macro Themes

Matt Bush and Maria Giraldo join the Macro Markets podcast to discuss our newly published Quarterly Macro Themes for 1Q 2024.







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