Thomas Majewski, founder of Eagle Point Credit, joins Forward Guidance to share his insights from the somewhat opaque world of Collateralized Loan Obligations (CLOs). Majewski explains why he perceives that CLO equity enjoys a series of structural advantages, and he also shares his thoughts on the worlds of private credit and bank capital relief transactions. Filmed on December 11, 2023.

Please note that any past performance discussed in this presentation is not indicative of, or a guarantee of, future performance.

To reference performance and the discussion about Eagle Point Credit Company, please visit the website: https://www.eaglepointcreditcompany.com/

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Timestamps:

(00:00) Introduction

(00:11) What Are CLOs (Collateralized Loan Obligations)?

(19:00) A Look Back At CDOs And 2008

(31:42) Impact Of Rising Rates On Companies' Ability To Service Debt Loads

(40:14) How Would "The CLO World" Handle A Potential Recession?

(43:06) Banks Are Selling Credit Risk (i.e. Buying Insurance) Via "Regulatory Capital Relief" Credit Linked Notes (Are They Similar To Credit Default Swaps?)

(54:15) Private Credit - Golden Age Or Biggest Bubble In The World?

(01:00:13) Liability Structure of BDCs (Business Development Corporation)

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Disclaimer: Nothing discussed on Forward Guidance should be considered as investment advice. Please always do your own research & speak to a financial advisor before thinking about, thinking about putting your money into these crazy markets.

232. Squashing the Opposition