FICC Focus Credit Crunch: Sound Point's Steve Ketchum on Credit's Revolution
Nov 17, 2025
Steve Ketchum, the founder and CEO of Sound Point Capital—an innovative player in alternative credit management—shares insights into the evolution of credit strategies. He delves into the importance of having more ideas than capital, the rise of private credit, and how it can enhance financial stability post-2008. Ketchum discusses the intricacies of commercial real estate and CLOs, and the recent credit events that have sharpened investor diligence. He also highlights his philanthropic efforts, underlining a commitment to community and support for first responders.
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Founding SoundPoint During The 2008 Sale
- Steve Ketchum left big-bank roles and started SoundPoint in 2008 with $35 million during the crisis.
- He partnered with Stone Point and gave himself three years to prove the firm could succeed.
Prioritize Performance Over Rapid AUM
- Build credibility patiently and focus on performance rather than chasing assets.
- Prioritize long-term partnerships with investors who value returns and lessons over monthly AUM growth.
Plan Hiring And Cap Funds Proactively
- Hire in advance for where you expect to be a year from now to avoid being under-resourced.
- Set hard caps on fund size to preserve long-term returns and right-size strategies.
