Debtwired!

In this episode of Debtwired!, Brian Resnick, partner in Davis Polk's restructuring group and head of the firm’s Liability Management & Special Opportunities practice, joins Debtwire co-managing editor, Madalina Iacob, to discuss the current state of restructurings, how LMEs have evolved in the past year, what creative workaround structures he has seen post the Fifth Circuit decision in Serta, and the evolution of Davis Polk’s preeminent restructuring practice.Brian also shares with us how he transitioned to law from being a Juilliard-trained professional musician playing on Broadway and Saturday Night Live, and how he co-produced a Tony Award-winning Broadway show.

Justin Lee, a partner at Weil, Gotshal & Manges and expert in banking and finance, shares insights on the rapidly evolving landscape of liability management exercises. He discusses how tariff-driven market fluctuations are reshaping company strategies and the increasing creativity sponsors are showcasing. Lee also explores trends in deal terms and the changing dynamics between borrowers and lenders, alongside the rise of cooperative groups. His take on what the future holds for LMEs is both informative and thought-provoking.

Scott Greenberg, global chair of Gibson Dunn’s restructuring practice, shares his extensive knowledge on liability management exercises and group formation. He discusses how market dynamics are reshaping deal activity and highlights trends in multi-tier LMEs and carve-out premiums. Greenberg delves into the significance of cooperation agreements and their influence on investment outcomes, particularly in cross-border scenarios. He also reflects on the cultural disparities between European and U.S. investment practices, emphasizing the necessity of understanding these differences.

In this engaging discussion, Brook Hinchman, Managing Director at Oaktree, and Jared Parker, co-head of the team, delve into credit strategies during market volatility. They highlight Oaktree's impressive $16 billion fund aimed at opportunistic investments in liquid credits and rescue financings. The duo explores sectors facing pressure versus those with resilience, like healthcare and telecom. They emphasize the importance of diversification and strategic investment covenants while sharing insights on navigating the evolving credit landscape for higher returns amid uncertainty.

Mike Nowakowski, Head of Structured Products at Conning, shares his insights on the intriguing world of esoteric asset-backed securities (ABS). With esoteric ABS now making up over 30% of total issuance, he explains the allure of unique assets like shipping containers, data centers, and music royalties. Dive into the benefits of these investments compared to traditional ones, and discover how institutional investors are shifting focus. Plus, explore the evolving solar ABS market and the impact of tariffs on big players like Microsoft and Amazon.

Michael Ewald, Bain Capital’s global head of private credit, shares insights from his extensive career in finance. He discusses navigating today’s turbulent credit landscape, highlighting opportunities within the middle market. Ewald elaborates on the impact of political events, particularly tariff threats, on market volatility. He also delves into the shifting dynamics of pricing and covenant protections, while addressing competition between private credit and syndicated loans. With a focus on risk management, he emphasizes the evolving strategies shaping the future of private credit investments.

In this episode of Debtwired, Claire Madden, a founding partner at Connection Capital, discusses the evolution of private capital since the firm’s inception in 2010. She explores changing investor appetite, the sectors and asset classes currently attracting interest, and how macroeconomic and political factors are influencing investment strategies. Claire also highlights Connection Capital’s approach to addressing risks, liquidity concerns, and the future of private capital investments.

In this episode of Debtwired, Albane Poulin, Head of Private Credit at Gravis, discusses the evolving role of private credit in infrastructure and real estate finance across the UK and globally.

Thomas Kennedy, Chief Investment Strategist for JP Morgan Private Bank, shares insights into today's shifting debt markets. He discusses how monetary policy changes and geopolitical tensions, like tariffs, are affecting interest rates and high-yield investments. Kennedy highlights the rise of direct lending and private credit as key strategies for navigating market uncertainties. He also suggests rethinking traditional investment approaches, prompting a fresh look at diversification beyond the usual stock-bond mix.

Dennis Heuer, partner at White & Case, joins Debtwire’s Johannes Koch to explore the impact of the Secondary Credit Markets Act (Kreditzweitmarktgesetz) on the market for non-performing loans.The act, or NPL-directive for short, was introduced just over a year ago in Germany to help foster a deeper and more liquid secondary market for non-performing loans. Now that the dust has settled on its introduction, Heuer reviews the basic tenants of the law, how it has impacted market participants and ultimately, gives us a view on whether it has delivered, or has yet to deliver, on its promise.Heuer is a partner at White & Case and an expert in structured finance and securitisation within the law firm’s EMEA Structured Finance Group. He represents clients, among them banks, insurance companies, debt collectors and multinational corporates on a wide range of cross-border transactional and advisory matters.