

The Next Stage of the Credit Cycle with Oaktree’s Poli
15 snips Sep 19, 2024
Danielle Poli, co-portfolio manager of Oaktree's Diversified Income Fund, shares her insights on the shifting credit landscape following recent Federal Reserve rate cuts. She discusses the surprising resilience of corporate credit despite high inflation and rising interest rates. Danielle delves into the explosive growth of the private credit market and its impact on traditional financing. With a focus on navigating market volatility, she highlights the importance of liquidity, adaptive strategies, and evolving trends in the BBB bond market.
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Credit Cycle Defies Expectations
- Credit markets have defied expectations with low defaults and tight spreads despite rising rates and inflation.
- This raises questions about the sustainability of this dynamic and potential future risks and opportunities.
Explosion of Credit Options
- Companies now have numerous financing options, from bonds and loans to private deals.
- This raises questions about how this impacts the credit cycle and investor decisions.
Oaktree's Investment Approach
- Oaktree focuses on bottom-up investing, prioritizing avoiding bad outcomes in credit markets.
- Their investment committee discusses fundamentals and technical trends to identify potential risks.