Grant’s Current Yield Podcast NOTHING NEW UNDER THE SUN
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Jun 4, 2025 Jamie Sprayregen, vice chairman of Hilco Global and a bankruptcy law expert, dives into financial turbulence and restructuring strategies. He discusses the recent U.S. credit rating downgrade and its global implications, intertwining historical insights from Alexander Hamilton. Jamie elaborates on the challenges in private equity and credit markets while analyzing the cyclical nature of the economy. The conversation touches on the unexpected trends in retail and real estate, emphasizing the moral implications of financial activities in uncertain times.
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Trump's Negotiation Style Anecdote
- Jamie Sprayregen found Donald Trump a negotiator comfortable with chaos and ambiguity.
- Negotiations started maximalist but settled with Trump getting more than expected due to his tactics.
Rising Rates Expose LEV Finance Risks
- Higher interest rates expose vulnerabilities in private equity and credit due to leveraged capital structures.
- Many companies will need restructuring or capital adjustments, though not a massive sudden wave.
Leveraged Finance Markets Stay Open
- Despite headwinds, leveraged finance markets remain open with high volume and tight spreads.
- Market prices seemingly ignore broader economic and geopolitical uncertainties.