ReSolve Riffs with Alfonso Peccatiello (aka MacroAlf): Liquidity and the Global Macro Landscape
Resolve Riffs Investment Podcast
The Importance of Growth in Private Credit
Growth in private credit used to be important because it signaled that businesses were borrowing to build things. But in the last decade or so increasingly businesses have been borrowing for capital structure engineering right? They're not borrowing to invest. They're borrowing largely for kind of stock buybacks right. So equity prices are going up but it's because companies are buying back shares not because earnings are going up at an outsized rate. And that's also the reason why I discern between financial money creation and real economy money creation, which is whatCredit impulse does. The credit impulse doesn't truck super well what equity markets are doing but the trucks really well what earnings are going to be doing right. It trucks
