The Insight by Oaktree Capital

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.

Join Robert O’Leary, Steve Tesoriere, Kenya Williams, and Nicole Adrien for a deep dive into the credit cycle and real estate trends. Steve, a Co-Portfolio Manager, shares insights on liability management and distressed debt strategies, while Kenya discusses emerging opportunities in commercial real estate amidst rising interest rates. The team analyzes the impact of demographic shifts on investment decisions, particularly in medical office buildings, and explores the complexities of managing private credit markets and defaults.

The Federal Reserve's recent interest rate cut has shifted market dynamics, affecting corporate credit significantly. Experts discuss the growing divide between stable firms and those crippled by debt. Liability management exercises are on the rise as companies aim to restructure without bankruptcy, creating unique investment opportunities. Additionally, demographic changes are sparking real estate market potential, revealing fresh avenues for investors to explore amidst current challenges.

Explore the fascinating evolution of private credit as a crucial asset class since the financial crisis. Discover insights on the delicate balance of excess capital versus limited deal flow and the recent shift towards retail fundraising. Dive into the intricate dynamics between banks and private credit firms, and examine the surge in asset-backed finance amid changing market conditions. Unearth emerging investment strategies and opportunities, especially in Southern Europe's hospitality sector, highlighting the challenges and rewards in this unique financial landscape.

Join Armen Panossian, Co-CEO and Head of Performing Credit, and Wayne Dahl, Co-Portfolio Manager of Global Credit, as they dive into the widening wealth gap in the U.S. economy. They discuss how luxury markets thrive amid rising delinquencies, the risks in retail sales, and the implications for credit investments. With economic shifts affecting both consumer behaviors and Federal Reserve strategies, discover how careful credit selection can unveil promising investment opportunities despite the challenges ahead.