Ryan Kelly, Lead Portfolio Manager at PGIM Fixed Income, and Rishav Puri, Special Situations Credit Analyst, dive into the shifting landscape of liability management in credit markets. They discuss the surge of Liability Management Exercises (LMEs) as proactive measures amidst rising interest rates. The duo highlights how strategic negotiations can balance risks and benefits, echoing the need for thorough research. They also touch on the potential for increased defaults, urging investors to navigate complexities for opportunities.
