3min snip

The Compound and Friends cover image

Is Rick Rieder a Bond King?

The Compound and Friends

INSIGHT

Private Credit and Restructuring

  • High multiples in equities and tight credit spreads indicate that good times are already priced in.
  • Private credit's growth allows for restructuring, reducing defaults in favor of modified transactions.
  • The ability to monetize and leverage assets, combined with substantial funds available for restructuring, suggests a positive outlook.
  • This restructuring activity primarily involves hedge funds and private equity, not pension funds, which mitigates broader systemic risk.
  • The influx of capital seeking deployment drives oversubscription in deals, indicating a potential for less rigorous due diligence.
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