The Insight by Oaktree Capital

In this discussion, Armen Panossian, Co-CEO and Head of Performing Credit at Oaktree Capital, and David Rosenberg, Co-Head of Liquid Performing Credit, delve into the current state of credit markets. They reveal surprising resilience in the U.S. economy despite recession fears, and explore rising car repossessions signaling stress among lower-income consumers. The duo highlights the convergence between public and private credit markets while discussing strategies for investing in low spread environments and the importance of creditor dynamics in financial negotiations.

Madelaine Jones, a Portfolio Manager for European High Yield Bonds, joins Justin Quaglia, a Credit Trader focused on high-yield bonds, and Christopher Gray, a Managing Director in Asset-Backed Finance at Oaktree. They discuss the recent volatility in credit markets, exploring the psychological impacts on investors. The group analyzes the dynamics of leveraged credit and the impact of regulatory changes on trading. Finally, they delve into opportunities in asset-backed finance amidst a shifting economic landscape, emphasizing the importance of strong investment relationships.

Wayne Dahl and Suzana Perić dive into the current landscape of public and private credit markets. They discuss the tight supply due to reduced M&A activity and the increased demand for yield driving valuation discrepancies. The duo explores rising debt levels, corporate leverage dynamics, and the surprising resilience of economies post-COVID. They also analyze the evolving high yield bond space amid rising interest rates and the importance of technology in financing. Strategies for blending public and private investments offer insights for navigating market gridlock.

The co-founders reflect on the origins and growth of their firm over three decades. They share humorous stories about the initial naming and financing inspired by light-hearted dinner conversations. Pivotal moments in creating a distressed debt fund highlight personal philosophies on work-life balance. Insights into their $10 million start and the unexpected success without a strict profit plan reveal the importance of company culture. They reminisce about their teamwork, lasting relationships, and the journey ahead, comparing it to savoring a meal at a favorite restaurant.

In this discussion, Matt Wilson, Co-Portfolio Manager in Special Situations, Christina Lee, Co-Portfolio Manager for U.S. Private Debt, and Jennifer Marques, Head of Strategy and Structuring in Asset-Backed Finance, dive into the impact of rising interest rates on private equity and the growing demand for junior capital. They explore innovative strategies in structured equity and the evolving dynamics of capital markets. The conversation highlights the importance of understanding asset-backed finance risks and the changing landscape for private lenders.

Join Armen Panossian, Co-CEO and Head of Performing Credit at Oaktree, along with Ronnie Kaplan, a Portfolio Manager for U.S. Senior Loans, and Ross Rosenfelt, a Managing Director and Restructuring Lawyer. They discuss the rising prominence of Liability Management Exercises (LMEs) and their benefits over traditional bankruptcy. The trio delves into the complexities of debt restructuring, uptier transactions, and the delicate balance between lender strategies and borrower assistance, all while navigating a volatile credit landscape.

Danielle Poli, an Assistant Portfolio Manager for Oaktree's Global Credit Strategy, discusses the lasting impact of high Treasury yields on credit investments. Julio Herrera, specializing in Emerging Markets Debt, offers insights on China's recent stimulus efforts and its effects on the economy. Mark Jacobs shares his outlook on the real estate market, focusing on the multifamily sector's resilience amid rising interest rates. Together, they explore investment opportunities in a volatile landscape while emphasizing the importance of diligent research and strategic management.

Explore the U.S. economy's resilience amid potential inflation, with high-income assets poised for gains. Discover how China's stimulus measures respond to faltering consumer confidence and deflation. Dive into the surge of the convertible bond market, where companies leverage favorable conditions. Lastly, compare international and domestic equity markets, revealing compelling valuation disparities. These insights illuminate the complex landscape investors navigate today.

Join Armen Panossian, Co-CEO and Head of Performing Credit at Oaktree Capital, and Brendan Beer, Co-Portfolio Manager of Structured Credit and Asset-Backed Finance, as they dive into the thrilling world of asset-backed finance (ABF). They explore the shifting dynamics of the current credit markets, analyze how ABF stands apart from corporate lending, and identify promising sectors like aviation finance. The discussion highlights unique investment opportunities and effective strategies for building resilient ABF portfolios in a fluctuating market.

A deep dive into the evolving landscape of lending reveals how regulatory changes are pushing traditional banks away from corporate lending. As a result, alternative capital providers are stepping in, especially in asset-backed finance. The conversation touches on exciting growth sectors like aircraft leasing and consumer credit. Additionally, they delve into broader trends such as the implications of the Fed's first interest rate cut and a resurgence in M&A and LBO activities, along with the growing prominence of PIK financing.