Invest Like the Best with Patrick O'Shaughnessy Ali Hamed – An Update on Private Credit - [Invest Like the Best, EP.172]
13 snips
May 5, 2020 
Ali Hamed, a private credit expert, returns with insights on current market dynamics and opportunities. He discusses the impact of COVID on private credit, highlighting which areas have stalled and where investors can find growth. Hamed emphasizes the importance of focusing on quality over returns amid uncertainty and explores the rise of digital business models. He also dives into the complexities of junior versus senior debt, and how evolving online platforms are redefining small businesses and investment strategies.
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Initial Private Credit Reaction
- Private credit markets initially froze as no model accounted for a pandemic.
- Short-duration assets required immediate attention due to upcoming maturities.
Bag of Uncertainty Example
- A "bag of uncertainty" example includes small business loans, impacted by unknown PPP effects and default rates.
- Subprime consumer loans surprisingly haven't seen a significant default increase yet.
Private Credit Levers
- Private credit leverages domain expertise, making originator/servicer relationships crucial.
- Unlike mainstream markets, specialty lending lacks backup servicers, increasing the importance of existing partnerships.