Jim Schaeffer

Jim Schaeffer, global head of leveraged finance at Aegon Asset Management, shares insights on recent market volatility and its impact on M&A and dividend recaps. He discusses the challenges posed by fluctuating interest rates and the Federal Reserve's inflation management. Schaeffer highlights the growing trend of liability management as companies seek liquidity in a high-interest environment, plus the dynamics of the leveraged loan market. He also touches on predictions regarding corporate bankruptcies amidst economic uncertainty.

Jim Schaeffer, Global Head of Leveraged Finance at Aegon Asset Management, dives into the complexities of today's credit markets. He discusses the surprising tight loan spreads amid rising inflation and borrower pressures. Jim explains the nuances of liability management exercises, contrasting cooperative strategies with coercive structures in lending. He emphasizes the importance of early decisions and scale in influencing outcomes while offering insights into the evolving landscape that creates opportunities for distressed investors.

Jim Schaeffer, Global Head of Leveraged Finance at Aegon Asset Management, discusses the looming distress in highly indebted companies as the economy slows. He shares insights on third-quarter earnings, the implications of lower interest rates, and the distinct stress patterns across sectors like chemicals and food. Schaeffer also emphasizes the importance of understanding consumer behavior and the risks associated with public versus private credit markets, all while urging caution around late-cycle investment trends.