The Credit Edge by Bloomberg Intelligence Oaktree Worries About Lack of Discipline in Rush to Fund AI
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Nov 13, 2025 Danielle Poli, a portfolio manager at Oaktree Capital Management, shares her insights on the cautionary trends in credit markets. She highlights the alarming lack of discipline as investors rush to fund AI-related ventures, questioning the sustainability of such hype. The discussion also covers strategies for finding strong returns in collateralized loan obligations and real estate debt, as well as concerns about credit cycles and the impact of liability management exchanges. Poli emphasizes a disciplined investment approach amidst growing competition for capital.
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Diversified Multi‑Asset Credit Edge
- Oaktree blends liquid and private credit to diversify and find best ideas across many asset classes.
- Diversification and bottom-up credit selection let them be selective and exploit volatility for bargains.
Underwrite To Capture Incremental Yield
- Do underwrite credit carefully and avoid non‑payers to capture attractive yields in sub‑investment grade markets.
- You can earn incremental yield over Treasuries without needing further spread tightening.
Public And Private Credit Are Symbiotic
- Private and public credit are converging into a symbiotic relationship rather than rivals.
- Private lenders must be paid for illiquidity as the yield differential compresses but persists in parts of the market.
