The Credit Edge by Bloomberg Intelligence
TPG Angelo Gordon Predicts Home Equity Borrowing Boom
Nov 27, 2024
TJ Durkin, Head of Structured Credit and Specialty Finance at TPG Angelo Gordon, discusses the booming opportunities in home equity borrowing as homeowners capitalize on rising real estate prices. He predicts a staggering $150 to $200 billion in annual origination, highlighting the shift towards asset-based finance. The conversation touches on the evolution of structured finance, the challenges facing private debt, and emerging trends in commercial real estate and residential solar energy. Durkin emphasizes new strategies and regulatory impacts shaping the future of lending.
47:15
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Quick takeaways
- The surge in home equity borrowing is creating a $150 to $200 billion opportunity for debt investors in a $2 trillion market.
- The private credit landscape is evolving as investors increasingly favor asset-backed finance due to challenges faced by traditional banks.
Deep dives
The Boom in Structured Credit Markets
Structured credit markets are experiencing significant growth as declining rates and a thriving economy contribute to increased issuance volumes, particularly in asset-backed securities. The public market spreads have improved, creating a favorable environment for issuance as investors look for alternatives to corporate credit. The expectation is that this trend will continue, with the emergence of new issuers and financial products that capitalize on the current market conditions. As private debt reaches a staggering $1.6 trillion, there is potential for enormous growth in asset-backed finance, highlighting a shift in the financial landscape.
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