Grant’s Current Yield Podcast LONG IN THE TOOTH
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Sep 16, 2024 Dave Breazzano, head of credit at Polen Capital, shares invaluable insights into the current credit cycle and its implications for lending practices amid rising defaults. He delves into investment strategies tailored for complex markets, emphasizing credit quality and sector diversification. The discussion also covers the booming private credit space and its impact on the financial landscape. Breazzano highlights challenges investment managers face and teases an upcoming conference, inviting listeners to engage in essential financial topics.
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Focus on Fundamentals
- Focus on lending money at a specific interest rate and getting repaid.
- Interim price fluctuations due to Fed actions are just noise.
Extended Credit Cycle
- The current credit cycle is extended due to the anticipation of a recession.
- This has led to market segmentation and diverse dynamics across various credit markets.
Finding Opportunities
- Seek opportunities in mid-to-small cap space and lower-tier high-yield markets.
- Larger investors often avoid these areas due to capacity constraints or regulatory restrictions.