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Bloomberg Surveillance

Bloomberg Surveillance TV: September 17, 2024

Sep 17, 2024
Ian Lyngen, head of US Rates Strategy at BMO, predicts a potential 50bps cut from the Fed to front-load the process. Matt Miskin, Co-Chief Investment Strategist at John Hancock, discusses how the cutting cycle may end with lower numbers for the 10-year and Fed funds rates. Blerina Uruci, Chief US Economist at T. Rowe Price, expresses skepticism about the sustainability of disinflation in goods. The conversation dives into the implications of these potential cuts on the economy and market strategies.
23:02

Podcast summary created with Snipd AI

Quick takeaways

  • Direct lending is emerging as a vital financing alternative, offering tailored solutions as traditional banks face fluctuations in capital availability.
  • Potential Federal Reserve rate cuts could significantly influence market dynamics, highlighting the importance of effective communication and investor expectations amid inflation concerns.

Deep dives

The Growth of Direct Lending

Direct lending has rapidly expanded in recent years, becoming a significant source of capital for both corporate borrowers and financial sponsors. This growth has been driven by the increasing reliance on private capital to support ongoing business expansion, particularly as traditional financing options fluctuate. As companies seek flexibility and tailored financial solutions, direct lending allows for more customized agreements that align with borrower needs. This trend highlights the evolving landscape of finance where alternatives to conventional banks are increasingly favored to meet capital requirements.

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