Monetary Matters with Jack Farley Navigating the Non-Investment Grade Landscape In A High Tariff World | Oaktree’s Wayne Dahl on High-Yield Bonds, Bank Loans, CLOs, CMBS, and Private Credit
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Jul 23, 2025 
Wayne Dahl, Managing Director at Oaktree Capital Management, shares his expertise on navigating the complex world of credit. He discusses finding value in high-yield bonds and the impact of tariffs on credit markets. Dahl emphasizes the importance of proactive portfolio management and the role of technology in shaping the borrowing landscape. He also highlights the challenges around data transparency in private credit, urging informed decision-making amid heightened risks. Tune in for insights into the dynamics of CLOs, RMBS, and the broader financial landscape.
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Yield Drives Credit Returns
- Attractive yields drive total return more than just spread levels in credit assets.
- Yields of 7-9% across loans, bonds, and structured credit remain compelling today.
Value Amid Tight Credit Spreads
- Although some credit spreads are tight, comparing to expensive equities changes perspective.
- Value appears in lower-rated high yield bonds, certain CLO tranches, and non-agency RMBS.
Active Management For Yield
- High-grade high yield bonds may yield as low as 6%, offering less exciting returns.
- Active management is required to find value especially among single B rated credits.