Debtwired!

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.

Danyal Khan, founder of Altocrest Advisory, brings over a decade of institutional banking experience to the discussion. He shares insights on the unique challenges smaller businesses face in securing debt financing. Khan emphasizes the advantages of boutique firms, offering personalized support often overlooked by larger institutions. He also tackles misconceptions about debt and the growing importance of transparent relationships between businesses and lenders. With elevated interest rates, he guides entrepreneurs in navigating a complex, evolving lending landscape.

Engin Okaya, an executive managing director at PGIM Private Capital, shares her expertise on private credit trends and strategies. She discusses the value of a structured framework for evaluating lending while emphasizing middle-market companies for stable investment. Engin highlights the growing collaboration between private credit firms and banks, enhancing deal opportunities. She also delves into the transformative role of artificial intelligence in investment decisions, viewing it as a tool to support human judgment rather than replace it.

Kirstie Hutchinson and Adam Caines, private capital partners at Macfarlanes, dive into the evolving landscape of mid-market loan documentation in Europe. They discuss how relaxed documentation practices are shifting the balance in favor of borrowers, and highlight new clauses that may raise concerns among lenders. The conversation also touches on the impact of external events like COVID-19 on loan structures, emphasizing the importance of strong relationships between borrowers and lenders in navigating this complex terrain.

Jennifer Daly, the Head of Private Credit and Special Situations at Paul Hastings, offers deep insights into the evolving private credit market. She discusses trends and optimism surrounding mergers and acquisitions in sectors like healthcare and technology. The conversation highlights the implications of tariffs, the balance between rising costs and lower interest rates, and the shift towards more flexible deal structures. Daly also navigates the differences between Chapter 11 bankruptcy and out-of-court restructuring, emphasizing the new protections for borrowers.