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Sometimes it feels like the next wave of distress in the debt markets is always two quarters away. What if it’s already here — less of a tsunami and more of a gradual rise in the sea level?

Chris Wright runs the private markets group at Crescent Capital, and has plenty of experience as a junior capital provider to stressed credits. As we reported this week, tapping third parties for instruments such as preferred equity and holdco PIK debt has become an increasingly popular strategy for borrowers facing tricky maturities.

In this week’s episode of the podcast, Will Caiger-Smith quizzes Chris on what these types of situations can teach us about distress, and how the markets deal with it in 2023.