Cloud 9fin

With Super Bowl Sunday upon us, much like over a third of the US, we thought we’d focus on sports.Private credit has been circling sports for some time as an investment opportunity. Many regulatory changes in the past year and an increasing number of emerging sports leagues have brought it back into view to begin this year.In this episode of Cloud 9fin, senior reporter Peter Benson sits down with Aaron Kless, managing partner and CIO at Andalusian Credit Partners, to discuss all things private credit and sports.The discussion topics include the institutionalization of the sports market, how credit works with sports franchises and other areas of the sporting world that are ripe for credit investment.As always, if you have any feedback for us, send us a note at podcast@9fin.com

Soren Christensen, partner at Cinven with extensive experience in leveraged finance, and Amit Bahri, co-head of European Direct Lending at Goldman Sachs, dive into the evolving world of private credit. They explore the shifting dynamics between banks and private credit firms, highlighting changing borrower preferences and strategies. The duo discusses the implications of the returning BSL market, the appeal of junior PIKs, and what the next few years might hold for M&A activity and lending trends as market conditions stabilize.

Southern California wildfires are wreaking havoc on leveraged finance, with estimated insured losses surpassing $20 billion. Industries are bracing for impact, especially utilities facing liabilities, which could strain fire insurance funds. The media sector, however, shows surprising resilience amid the challenges. Dive into the financial ramifications and learn about tools like wildfire trackers for staying informed.

In the current landscape, private credit fundraising has hit a low, yet investor optimism remains strong. There's a notable consolidation, with capital flowing to established managers while newer firms struggle. The impact of rising interest rates and potential banking deregulation poses both challenges and opportunities for these asset managers. The discussion also hints at how political shifts, like a new administration, might influence this space in the coming year.

For this week’s Cloud 9fin episode, we’re launching a new monthly recurring series: Jane’s LME Addiction, in which distressed legal analyst Jane Komsky dives into the latest news in liability management. Joined by 9fin global head of distressed and restructuring Max Frumes and 9fin head of legal James Wallick, Jane walks through the landmark decision out of the Fifth Circuit Court of Appeals in the Serta Simmons case and what it means for LMEs going forward.Find all our coverage on Serta at 9fin.com, including our latest stories on the contours of potential uptiering transactions in 2025 and the evolution from Serta blockers to “Fifth Circuit blockers.”If you have any feedback for us, send us a note at podcast@9fin.com. Thanks for listening.

Pratik Gupta, Head of CLO and RMBS research at Bank of America, shares insights on the thriving CLO market. He highlights the record-breaking performance of CLO BBs and AAA markets, with returns soaring since 2022. Gupta discusses the rising appeal of AAA CLOs among investors, strategic shifts by U.S. banks, and the influence of Japanese buyers. He also delves into the complexities of Loan Market Exchange structures and how CLO managers can navigate the evolving landscape of 2025. Expect more growth and strategic depth ahead!

Mike Harmon, a Stanford lecturer and managing partner at Gaviota Advisors, shares insights from his book on fixing broken balance sheets. He likens corporate debt dynamics to treating sick patients, explaining how even giants like Twitter can fall prey to high debt. The conversation explores the impact of meme stocks on vulnerable companies, while also discussing strategies for restructuring that highlight the balance between vision and practical tools. Harmon emphasizes the need for adaptability in today’s financial landscape, filled with challenges and opportunities.

After a great run co-founding and helping to build up the European Leveraged Finance Association, Sabrina Fox is putting ELFA on the shelf to focus on her work at Fox Legal Training and Good Girl to Goddess.In this episode of Cloud 9fin, ESG analyst Jennifer Munnings sits down with Sabrina to explore how ELFA has shaped buyside engagement and elevated standards in credit markets. From the rise of J.Crew blockers and their impact on covenant protections to ELFA’s efforts to foster transparency and innovation in ESG practices, Sabrina offers a front-row perspective on the evolving landscape of leveraged finance. They also discuss the challenges of balancing incumbent flexibility with investor safeguards and what lies ahead for the industry as Sabrina embarks on her next chapter.Have any feedback on this episode? Send us a note at podcast@9fin.com. Thanks for listening.

Michelle Handy, Chief Investment Officer of Direct Lending at First Eagle Alternative Credit, shares her expertise in lower middle market lending. She discusses the challenges of intensifying competition and a complex macroeconomic landscape. Handy highlights asset-based lending as a promising strategy and emphasizes the critical role of strong sponsor relationships during turbulent times. Additionally, she dives into the nuances of covenant negotiations and the impact of retail capital on the lower middle market, shedding light on investment prospects and risks.

Stakeholders face tough choices as Lycra navigates a complex balance sheet while considering a private credit option. The podcast delves into the strategic dynamics of financing in tight markets, where private credit is becoming increasingly appealing. Listeners learn about the intricate negotiations and conflicts among bondholders and financial players involved in restructuring. Additionally, it highlights the risks and challenges of refinancing, showcasing the changing landscape of private credit that adapts to current economic pressures.