Debtwired!

Dan Dooley, CEO of MorrisAnderson and an expert in crisis management, shares insights on the tough landscape faced by restaurant franchisees post-COVID. He discusses the pressures of restructuring within beloved burger and pizza brands. Listeners learn about the intricate dynamics of lease negotiations and the challenges in closing underperforming locations. Dooley highlights the mounting financial pressures from rising costs and shifting consumer behavior, providing a candid look at distress signals in the industry.

Horst Fuerpass, a partner at Falkensteg and debt advisory expert, joins Johannes Koch to delve into the critical yet often overlooked role of trade credit insurers. They discuss how these insurers support financial stability in the automotive sector and the risks involved in engaging them at the wrong time. Key insights reveal that miscommunication can lead to liquidity crises or even bankruptcy, emphasizing the need for timely collaboration. Fuerpass shares case studies that underscore the importance of trust and effective dialogue with these crucial stakeholders.

In this discussion, Clark Nicholls, CIO of Aucit Investment Management, shares insights into the European high yield market. He highlights current trends, including tightening spreads, and emphasizes the importance of risk management strategies. Nicholls delves into the potential of both high-rated credits and riskier CCCs for savvy investors. Additionally, he discusses the value analysis of key sectors, suggesting contrarian investment strategies that could yield significant returns despite market volatility.

Brian Resnick, a partner at Davis Polk, brings a unique perspective as a former Juilliard-trained musician turned legal expert in restructuring. He dives into the evolution of liability management strategies and the impact of recent market volatility. Brian also shares insights on current and future trends in financial restructuring, while reminiscing about co-producing a Tony Award-winning musical. His journey from the stage to the courtroom is as captivating as his innovative approaches to navigating complex legal landscapes.

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.