Morgan Stanley Private Credit’s Ashwin Krishnan Talks Opportunistic Strategies, Outlook for 2024
Jan 29, 2024
auto_awesome
Ashwin Krishnan from Morgan Stanley and Katharina Mora discuss opportuntistic private credit, leveraged finance, distressed debt, and market trends. They cover hybrid capital solutions, bankruptcy proceedings, diverse financial discussions, and legal rulings on PREPA bondholders and asbestos trust establishment.
Opportunistic credit strategy offers flexible solutions in private markets, spanning performing to distress credits.
Investment elements in opportunistic credit include tailored components like fees, yields, and equity upside for maximized returns.
Deep dives
Defining Opportunistic Credit Strategy
Opportunistic credit strategy involves approaching solutions with capital flexibility to provide senior debt, junior debt, or preferred equity based on specific situations. It focuses on private markets within a landscape where performing credit transitions into distress credit, offering solutions beyond traditional use cases like LBOs to various needs.
Unique Aspects of Opportunistic Credit Strategy
The strategy differs by focusing on corporate counter parties and avoiding asset-based lending or classical distressed debt, emphasizing dealing with corporate entities. The investment elements include upfront fees, yields, call protection, and equity upside, customized for each opportunity to maximize returns.
Outlook and Deal Flow in 2024 for Opportunistic Credit
The pipeline for 2024 shows early activity with a robust deal flow, indicating a potentially active year ahead. Anticipating interest rate cuts in 2024, the market expects increased deal flow and capital activity due to normalized cost of capital and improved capital structures, benefiting various sectors including opportunistic credit strategies.
This week on The Reorg Primary View, Ashwin Krishnan, co-head of North America Private Credit and head of opportunistic credit at Morgan Stanley joins Reorg’s Catarina Moura for a discussion on the outlook for opportunistic private credit in 2024 and investment strategies that span a spectrum of opportunities between performing and distressed credits.
And as always, we also bring you our weekly summary of interesting developments in the restructuring world as well as a preview of what’s on tap for this week.
If you are not a Reorg subscriber, request access here: go.reorg-research.com/Podcast-Trial
We're looking for feedback to improve the podcast experience! Please share your thoughts here: www.research.net/r/Reorg_podcast_survey
For more information on our latest events and webinars: reorg.com/resources/events-and-webinars/
Sign up to our weekly newsletter Reorg on the Record: reorg.com/resources/reorg-on-the-record/
#leveragedfinance #highyield #restructuring #performingcredit #distresseddebt #debtrestructuring #leveragedloans
Get the Snipd podcast app
Unlock the knowledge in podcasts with the podcast player of the future.
AI-powered podcast player
Listen to all your favourite podcasts with AI-powered features
Discover highlights
Listen to the best highlights from the podcasts you love and dive into the full episode
Save any moment
Hear something you like? Tap your headphones to save it with AI-generated key takeaways
Share & Export
Send highlights to Twitter, WhatsApp or export them to Notion, Readwise & more
AI-powered podcast player
Listen to all your favourite podcasts with AI-powered features
Discover highlights
Listen to the best highlights from the podcasts you love and dive into the full episode