Bloomberg Surveillance Stocks Hit Highs as ‘Santa Rally’ Countdown Begins
13 snips
Dec 26, 2025 
David Sherman, CIO at CrossingBridge Advisors, dives into credit opportunities outside the U.S. and the appeal of debtor-in-possession financing heading into 2026. Bill Adams, Chief Economist at Comerica Bank, predicts solid economic growth and the Fed’s potential support through rate cuts, despite a soft Q4. Scott Sperling, CEO of THL Partners, discusses the uptick in M&A activity, extended hold periods in private equity, and sectors to watch like pharma services and AI. It's a forward-looking conversation on markets and economics!
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2025 Gains Raise 2026 Valuation Risks
- 2025 showed strong equity and fixed income returns but set high starting valuations for 2026.
- David Sherman warns markets underprice liquidity and tail-risk premiums going forward.
First-DIP Purchase In 40-Year Career
- David Sherman described buying a Japanese debtor-in-possession loan for the first time in his 40-year career.
- He says Japan's changing corporate behavior and activism created that unique opportunity.
DIP Loans Can Be Safer Than They Appear
- Sherman argues debtor-in-possession loans can be lower risk because DIP lenders get paid first and are often secured.
- He cautions risk is case-specific and some DIPs (like First Brands) can fail spectacularly.