YouSaid · the spoken record

Wayne Dahl

lines on the record: 83
first: 2024-07-29
most recent: 2024-07-29
sittings or episodes: 1
sources: podcast

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“To make when you issue a CLO, that collateralized loan obligation, you must adhere to certain criteria. You have rating criteria, you have these metrics that you need to keep in mind when building a CLO. One of them that is quite common is a threshold on CCC rated loans. And that tends to run around 7.5%. So if I'm constructing a CLO, I'm probably not going to construct that CLO right out of the gate with a lot of loans that are B minus rated or right on the cusp of one notch downgrades into that triple C because that can impact my CLO greatly as I have to switch and mark that collateral to market given that as soon as that downgrade occurs when I'm a”
2024-07-29 · Forward Guidance · Why Credit Conditions Have Actually Eased Over Past Year | Oaktree’s Wayne Dahl on High-Yield Bonds, Leveraged Loans, Private Credit, and the Recession Yet To Arrive · IDENTIFIED FROM THE TRANSCRIPT
“Expresses the earnings as a ratio of their interest costs for many of these loan borrowers, it still is above one. For many it's above two and even above three. So although it has hurt and chewed into their overall earnings they have, for many, they're still in a position to be okay. And I think another thing that has helped the loan market, I think you alluded to this earlier, Jack, was the fact that private credit has been a solution to some of the more challenging issuers in the loan market. We certainly saw this in 2023 where some of the lower rated borrowers, which are not good fits for the CLO market, were refinanced by the private credit market. And I think that's an important point.”
2024-07-29 · Forward Guidance · Why Credit Conditions Have Actually Eased Over Past Year | Oaktree’s Wayne Dahl on High-Yield Bonds, Leveraged Loans, Private Credit, and the Recession Yet To Arrive · IDENTIFIED FROM THE TRANSCRIPT
“Yeah, I mean, definitely you're right in everything you just said. I mean, as investors and lenders, I mean, we are seeing yields decline from those peak rates that we saw in 2022 and early 2023. But again, you're kind of trading off almost maybe a decrease in default risk for a slightly lower coupon, but it's still at a level that's relatively attractive. So that's still pretty good. And we're happy to lock that in. But yes, I mean, I think one of the things that that has impacted is just companies overall ability and free cash flow to expand business and reinvest. It doesn't necessarily mean that we are at risk of not being paid back. I mean, these companies on an interest coverage ratio, which basically”
2024-07-29 · Forward Guidance · Why Credit Conditions Have Actually Eased Over Past Year | Oaktree’s Wayne Dahl on High-Yield Bonds, Leveraged Loans, Private Credit, and the Recession Yet To Arrive · IDENTIFIED FROM THE TRANSCRIPT
“My financing before the Fed raised interest rates if they were paying 300, say 400 basis points of sofa, they were paying 400 basis points when interest rates were at zero. And now that rates are at 5.3%, they're paying 9.3%. So their interest costs have more than doubled. Is it surprising to you that the companies have so far been able to handle this without a much higher increase in defaults?”
2024-07-29 · Forward Guidance · Why Credit Conditions Have Actually Eased Over Past Year | Oaktree’s Wayne Dahl on High-Yield Bonds, Leveraged Loans, Private Credit, and the Recession Yet To Arrive · IDENTIFIED FROM THE TRANSCRIPT
“That's really interesting. So a high yield bond investor, they are locking in their financing rate. And when rates were super low, interest rates were zero and they keep, you know, with the credit spread, they could get only 4%. They're still paying 4% now, whereas for borrowers in the loan market, their interest expense has gone up as interest rates have risen and they've gone up 530 basis points or let's say 500 basis points. That is a lot. And you're saying they're refinancing because this credit spread has narrowed. So the benign credit environment, the sanguiness of credit investors, folks such as yourself, is allowing them to refinance. So it's actually, they're taking income away from folks like yourself. So you're probably none too pleased, but they are getting that 30 years at 50 basis points of relief. But how are they handling that 500 basis points increase? They said, I wish I locked in my rate in the high yield bond market and I wish I locked”
2024-07-29 · Forward Guidance · Why Credit Conditions Have Actually Eased Over Past Year | Oaktree’s Wayne Dahl on High-Yield Bonds, Leveraged Loans, Private Credit, and the Recession Yet To Arrive · IDENTIFIED FROM THE TRANSCRIPT
“Relief from those higher rates through their refinancing efforts despite the Fed not cutting rates yet. So I think that has helped them with some of their interest burdens.”
2024-07-29 · Forward Guidance · Why Credit Conditions Have Actually Eased Over Past Year | Oaktree’s Wayne Dahl on High-Yield Bonds, Leveraged Loans, Private Credit, and the Recession Yet To Arrive · IDENTIFIED FROM THE TRANSCRIPT
“They have been slowly rising, not as maybe as fast as some people would have anticipated this year. This is actually one of the, I think, unique things in the loan market versus the high yield market is just as high yield borrowers are starting to more high yield borrowers are starting to refinance into this higher rate environment, loan borrowers because they have no call protection or there's nothing locking in their position for a number of years like a high yield bond, they're free to refinance whenever they want. So what you're seeing this year in 2024 is that loans that were issued in late 2022 or early 2023 are actually now refinancing at on average spreads that are 50 to 60 basis points lower. So loan borrowers are in a way getting a little bit”
2024-07-29 · Forward Guidance · Why Credit Conditions Have Actually Eased Over Past Year | Oaktree’s Wayne Dahl on High-Yield Bonds, Leveraged Loans, Private Credit, and the Recession Yet To Arrive · IDENTIFIED FROM THE TRANSCRIPT
“Of single B and single B minus credits in the loan market relative to the high yield market. And I think that speaks to the necessity of really having a good underwriting process in the loan market. I think the loan market is probably more challenging to take a more passive approach than the high-yield bond market because you want to and need to make sure you're going to avoid some of these potential trouble spots in the loan market. And that's revealed itself in default. We talked about defaults in the high yield.”
2024-07-29 · Forward Guidance · Why Credit Conditions Have Actually Eased Over Past Year | Oaktree’s Wayne Dahl on High-Yield Bonds, Leveraged Loans, Private Credit, and the Recession Yet To Arrive · IDENTIFIED FROM THE TRANSCRIPT
“Now, one of the things that's challenged that market is the fact that these companies have been paying more in interest over the last two years than their high yield counterparts. And this is due to the floating rate coupon. A high yield bond issuer that locked in a 4% coupon in 2021 that didn't have a maturity until maybe 2025 has enjoyed that 4% coupon that entire time. A loan borrower that issued at, say, sulfur plus 400, they went from paying a near 4% coupon to now an over 9% coupon. So you've seen that double. And that has seen some more increased downgrade activity within the loan market relative to the high yield bond market. There's a growing amount.”
2024-07-29 · Forward Guidance · Why Credit Conditions Have Actually Eased Over Past Year | Oaktree’s Wayne Dahl on High-Yield Bonds, Leveraged Loans, Private Credit, and the Recession Yet To Arrive · IDENTIFIED FROM THE TRANSCRIPT
“Leverage buyout activity to use in financing. And that's really limited the set of issuers that crossover between the loan market and the high yield market. So you really do need to look at those markets in some ways independent of one another. And we've seen some of the changes that that has brought in that recovery rates in the loan market have declined from their historical levels because you no longer have that bond underneath. But it's also meant that you have a lot of opportunity to earn maybe slightly higher yields and higher spreads than you otherwise would have. And in this market, or certainly over the last two years, the loan market has provided a lot of opportunity to earn pretty attractive yields in this floating rate day.”
2024-07-29 · Forward Guidance · Why Credit Conditions Have Actually Eased Over Past Year | Oaktree’s Wayne Dahl on High-Yield Bonds, Leveraged Loans, Private Credit, and the Recession Yet To Arrive · IDENTIFIED FROM THE TRANSCRIPT
“Yeah, I think one of the things that's important to note for people is that in the past, the bank loan market and the high yield market had a lot of things in common, a lot of issuers in common. You would see a company issue a loan, a secured loan, a first lien loan, and then issue a high yield bond as an unsecured bond in that same capital structure. And that really meant that you could do an analysis on an issuer, determine, do I want to own the most senior piece? Do I want to own the junior piece? Am I worried about default? Do I want the protection of that senior piece, which should give me a better recovery and a better position in the capital structure? Or do I want that unsecured piece at a slightly higher yield? Today, the bank loan market has really become largely a place for a lot of private equity M&A activity.”
2024-07-29 · Forward Guidance · Why Credit Conditions Have Actually Eased Over Past Year | Oaktree’s Wayne Dahl on High-Yield Bonds, Leveraged Loans, Private Credit, and the Recession Yet To Arrive · IDENTIFIED FROM THE TRANSCRIPT
“Moving some of that risk down into these higher yielding fixed income assets, where, again, that income is locked in in the form of a yield because all these events that you've mentioned that are going to be potentially negative for credit markets are certainly going to be challenging for the equity market. So again, trade a little bit of risk down, pick up some locked in yield. And I think that's what's drawing people into that market today, despite some of those tighter credit spreads.”
2024-07-29 · Forward Guidance · Why Credit Conditions Have Actually Eased Over Past Year | Oaktree’s Wayne Dahl on High-Yield Bonds, Leveraged Loans, Private Credit, and the Recession Yet To Arrive · IDENTIFIED FROM THE TRANSCRIPT
“Buy a portfolio with a stated yield, that is the yield, that is the return I will make if I don't give that up in the form of defaults and loss. So again, I have some element of protection just through the yield that I'm buying at. And I think that really does speak to where and how people should think about fixed income, especially sub-investment grade fixed income today in a portfolio. What I mean by that is historically we might be encouraging investors, hey, you should take your investment grade or lower yielding assets and trade up into higher yielding slightly lower rated assets. Today, I think the argument is actually different. It's actually those who have a lot of investments in the equity markets that have obviously done very well might want to consider.”
2024-07-29 · Forward Guidance · Why Credit Conditions Have Actually Eased Over Past Year | Oaktree’s Wayne Dahl on High-Yield Bonds, Leveraged Loans, Private Credit, and the Recession Yet To Arrive · IDENTIFIED FROM THE TRANSCRIPT
“Yeah, I mean, we're recording this on July 25th, the second quarter GDP just came out at 2.8%, you know, much higher than anticipated. So it's given the further strength in the consumer, it's really hard to see a recession coming imminently. Now, I think there's no doubt that there are many signs of slowdown. And there's probably a building consensus, but I think that's what makes it so difficult to kind of forecast these things as our chairman Howard Marks often says it's very difficult to understand the timing of these events. And if you make your investments solely reliant on getting the timing of those events correct, it's going to be difficult to have a consistent track record. This is where I think fixed income does make a lot of sense in portfolios today because if I”
2024-07-29 · Forward Guidance · Why Credit Conditions Have Actually Eased Over Past Year | Oaktree’s Wayne Dahl on High-Yield Bonds, Leveraged Loans, Private Credit, and the Recession Yet To Arrive · IDENTIFIED FROM THE TRANSCRIPT
“And how are you assessing the probability of Federal Reserve interest rate cuts steeper than expected interest rates cuts, as well as the R word recession, which has been predicted for two years and so far is not with us”
2024-07-29 · Forward Guidance · Why Credit Conditions Have Actually Eased Over Past Year | Oaktree’s Wayne Dahl on High-Yield Bonds, Leveraged Loans, Private Credit, and the Recession Yet To Arrive · IDENTIFIED FROM THE TRANSCRIPT
“And interest rates fall, that's good for the bond if interest rates, if credit spreads go wider, that's negative for the bond. So there is some offsetting. And again, I think where the floating rate securities come into play there and why it's important, I think today to have these in your portfolio is because, again, I like taking that, I don't mind as much taking that spread risk in a floating rate security because I know that I'm getting more income today than I am in that fixed rate security. So that protection I have in a high yield bond from duration and rates going down in a way I have some of that protection today as long as those rates are not being cut and I'm earning a much bigger coupon. So I'm kind of building in protection over the coming months. And again, kind of having that to rely.”
2024-07-29 · Forward Guidance · Why Credit Conditions Have Actually Eased Over Past Year | Oaktree’s Wayne Dahl on High-Yield Bonds, Leveraged Loans, Private Credit, and the Recession Yet To Arrive · IDENTIFIED FROM THE TRANSCRIPT
“Yeah, again, I mean, I think it goes back to that discussion of trade-offs. I think one of the things that we do know is that, yes, you're right, the market is quite certain that the Fed will cut rates in September. The market was quite certain at one point they would cut rates in March and they did not. So we never really know, but the real question is, as you said, what's going to happen to credit spreads during that period? Because again, you are exposed to both of those risks. I think that's why in a portfolio, you do like an investment like high yield where should credit spreads go wider, it most likely corresponds to a period where interest rates would be declining. Credit spreads wider probably means some form of economic slowdown. That comes”
2024-07-29 · Forward Guidance · Why Credit Conditions Have Actually Eased Over Past Year | Oaktree’s Wayne Dahl on High-Yield Bonds, Leveraged Loans, Private Credit, and the Recession Yet To Arrive · IDENTIFIED FROM THE TRANSCRIPT
“Duration is interest rate risk. So when you own something that you're paid back in five years, if interest rates go down, that is generally good for the duration part of your thing because you bought it at a higher interest rate, whereas the shorter date things have no duration. So if the Federal Reserve cuts interest rates in September is Wiley is expected now, the markets are pricing that, then instead of sofar being 5.3%, it will be 5% or 5.05%. So your income goes down. Yeah, I mean, how much do you think about credit risk, the risk of being paid back versus duration risk? Because for so long, as people have been pricing in a recession, they price that the Federal Reserve would cut interest rates and so far they haven't. It appears though that for this time they actually will this year. But how is that affecting your, how you're seeing things?”
2024-07-29 · Forward Guidance · Why Credit Conditions Have Actually Eased Over Past Year | Oaktree’s Wayne Dahl on High-Yield Bonds, Leveraged Loans, Private Credit, and the Recession Yet To Arrive · IDENTIFIED FROM THE TRANSCRIPT
“That sum, I also might look at structured credit because it just has higher absolute yields. Again, in the world of trade-offs, that might come at a cost of potentially some lower liquidity and the potential for some higher volatility. But again, when I'm mixing that up in a portfolio, that mix makes a lot of sense. And again, if things remain relatively calm and we continue in this environment where we seem to be the ever, you know, Talked about recession that hasn't occurred yet. It remains a little bit further away, then again, I really like the fact that you can just collect a lot of income in the meantime, which really does protect you against future volatile events.”
2024-07-29 · Forward Guidance · Why Credit Conditions Have Actually Eased Over Past Year | Oaktree’s Wayne Dahl on High-Yield Bonds, Leveraged Loans, Private Credit, and the Recession Yet To Arrive · IDENTIFIED FROM THE TRANSCRIPT
“And the amount of income you generate is much higher. If you look at the yield curve, and many people will know this, it's inverted. What that means is the highest rates are at the shortest end of the curve. If I buy a broadly syndicated loan, that loan's floating rate index is short rates, either one month or three-month sofa rates. They're five and a quarter to five and a half percent. So my coupon on a loan is going to be about 300 basis points above the average coupon on a high yield bond. So again, if I'm unsure of timing, I can balance off some of that lower income, higher duration, high yield with a higher income generating shorter duration security like a loan.”
2024-07-29 · Forward Guidance · Why Credit Conditions Have Actually Eased Over Past Year | Oaktree’s Wayne Dahl on High-Yield Bonds, Leveraged Loans, Private Credit, and the Recession Yet To Arrive · IDENTIFIED FROM THE TRANSCRIPT
“It's really a relative value decision that has to be made. And again, you're always making some sort of trade-off. When I think about where we want to invest in credit markets, particularly let's zero in on the sub-investment grade markets. Some of the trade-offs you're thinking about are do I want duration in my portfolio? you know, having those high yield bonds at discounted prices, that's pretty attractive. I get some duration. Obviously, we've seen rates come in over the last couple of months. Longer duration has helped there. But as we've learned over the last two years, trying to fully appreciate and guess the timing of when these actual rate shifts will occur has been difficult. So you can offset that with floating rate securities that have no duration. They're trading closer to their par prices, but their coupons are just much higher.”
2024-07-29 · Forward Guidance · Why Credit Conditions Have Actually Eased Over Past Year | Oaktree’s Wayne Dahl on High-Yield Bonds, Leveraged Loans, Private Credit, and the Recession Yet To Arrive · IDENTIFIED FROM THE TRANSCRIPT
“Limited some of their capital activity in the early onset of that quantitative tightening. And I think that did contribute to some of the spreads in these structured assets to go relatively wide to where you would see spreads in similarly rated corporate debt. Today, those spreads have come down, I think, in some cases. They're still relatively wide. There's still opportunity there, but you are seeing a little bit more convergence this year than we had definitely in 2023 and late 2022.”
2024-07-29 · Forward Guidance · Why Credit Conditions Have Actually Eased Over Past Year | Oaktree’s Wayne Dahl on High-Yield Bonds, Leveraged Loans, Private Credit, and the Recession Yet To Arrive · IDENTIFIED FROM THE TRANSCRIPT
“In general, I think over the last few months, you've definitely seen some compression and credit spreads generally. What I think we've seen over the last couple of years is that not all markets reacted with the same speed, perhaps. You did mention CLOs collateralized loan obligations. I think some of these parts of securitize the securitized or structured credit markets were a little bit slower to react to this. And I think one of the unique things there is that you have different factors involved in those spreads. You obviously have the spreads of the underlying collateral, which for a CLO is that broadly syndicated loan market, but you also have the spread that's involved in financing these vehicles. These are leveraged vehicles that need financing. And once the Federal Reserve started quantitative tightening and banks were concerned that their reserve balance brought reserves up, you would expect quantitative tightening to bring reserves down.”
2024-07-29 · Forward Guidance · Why Credit Conditions Have Actually Eased Over Past Year | Oaktree’s Wayne Dahl on High-Yield Bonds, Leveraged Loans, Private Credit, and the Recession Yet To Arrive · IDENTIFIED FROM THE TRANSCRIPT
“When you look at the broader world of credit, so looking at collateralized loan obligations, looking at bank loans, private credit, non-agency mortgage-backed securities, everything you look at is credit priced as optimistically as the high-yield bond market is.”
2024-07-29 · Forward Guidance · Why Credit Conditions Have Actually Eased Over Past Year | Oaktree’s Wayne Dahl on High-Yield Bonds, Leveraged Loans, Private Credit, and the Recession Yet To Arrive · IDENTIFIED FROM THE TRANSCRIPT
“To the loan market and other sub investment grade is it's been less about kind of a broad part of the market that's defaulted and it's been much more idiosyncratic. So if you look at companies that have defaulted, it tends to be in industries that are under some. Pressure maybe from regulatory changes or just from broader changes in the economy or consumer behavior such as areas like media, cable, things that are going through some sort of structural change that has left some companies behind.”
2024-07-29 · Forward Guidance · Why Credit Conditions Have Actually Eased Over Past Year | Oaktree’s Wayne Dahl on High-Yield Bonds, Leveraged Loans, Private Credit, and the Recession Yet To Arrive · IDENTIFIED FROM THE TRANSCRIPT
“Definitely, I think that alongside the fact that many of these high-yield companies have been largely responsible with their balance sheets, meaning they haven't gone out and been very active in making acquisitions or things that would build leverage in their portfolios, unnecessary spending of doing capital expenditures to kind of grow their business. They've been content to kind of let their business grow organically, continue to bring in that cash flow, keep costs under control. You remember during the inflation period, companies were able to pass a lot of that on instead of eating those costs and seeing their margins decline, all those events, I think, have, as you said, added up to a much better market. And really, you know, again, where you have seen some of the defaults, and this applies.”
2024-07-29 · Forward Guidance · Why Credit Conditions Have Actually Eased Over Past Year | Oaktree’s Wayne Dahl on High-Yield Bonds, Leveraged Loans, Private Credit, and the Recession Yet To Arrive · IDENTIFIED FROM THE TRANSCRIPT
“And so we can connect the relatively low amount of defaults in the high yield bond market to factors that you mentioned of a lot of the defaults already happening in 2020, a lot of deals being refinanced in 2020. So the maturity wall isn't until later on. Perhaps other financial sectors of the credit market, such as leveraged loans and private credit, refinancing the riskier deals, is another factor just how the US economy has outperformed expectations. And as we record here in late July 2024, the near unanimous predictions of economists in 2022, which I was, I found convinced by and I interviewed a lot of these economists close to two years ago that there would be a recession, is that related as well to the relatively benign credit environment?”
2024-07-29 · Forward Guidance · Why Credit Conditions Have Actually Eased Over Past Year | Oaktree’s Wayne Dahl on High-Yield Bonds, Leveraged Loans, Private Credit, and the Recession Yet To Arrive · IDENTIFIED FROM THE TRANSCRIPT
“On their way to default, they were already under pressure, and that event in a way kind of pushed them over the edge, so to speak. So COVID, in fact, ended up being somewhat of a cleansing event. And then again, pile on, as I said before, the increase in quality at the higher end of the market, the double be part of the market. And that kind of in general higher quality market has kept defaults relatively low and kept us an environment that's been good for high yield investors that have been willing to stay in that market and just earn that yield.”
2024-07-29 · Forward Guidance · Why Credit Conditions Have Actually Eased Over Past Year | Oaktree’s Wayne Dahl on High-Yield Bonds, Leveraged Loans, Private Credit, and the Recession Yet To Arrive · IDENTIFIED FROM THE TRANSCRIPT
“Yeah, so defaults have actually remained quite low over the last couple of years. If you go back to 2022, I think there was an expectation that you would see kind of two things. Number one, you would see credit spreads increase dramatically and you'd see defaults pick up. And that is historically something that was or would happen in the event of a recession, as many people expected, that recession to come. Instead, defaults remain low. And I think one of the big reasons for that is that we did have a number of defaults during COVID. And some might think, oh, when COVID hit, you probably had a number of good companies that ended up defaulting because the economy shut down and everything was slow. That's actually not what happened. A lot of the companies, the majority of the companies that defaulted in 2020 were companies that were already”
2024-07-29 · Forward Guidance · Why Credit Conditions Have Actually Eased Over Past Year | Oaktree’s Wayne Dahl on High-Yield Bonds, Leveraged Loans, Private Credit, and the Recession Yet To Arrive · IDENTIFIED FROM THE TRANSCRIPT
“Number of downgrades, and a lot of these downgrades were investment grade rated companies or fallen angels entering the high yield bond market. That significantly boosted the percentage of double B-rated bonds or bonds that have the highest rating in the sub-investment grade space. And at the same time, you had a number of the worst rated companies or CCC rated companies default. Triple Cs are down. Double B's are up on average you have a higher quality market. So again, when you make those comparisons to history, quality adjusting, duration adjusting, you know, those are factors that people have to consider. And again, that works for a lot of portfolios today that have even asset liabilities or just a desire to earn a mid to high single digit return.”
2024-07-29 · Forward Guidance · Why Credit Conditions Have Actually Eased Over Past Year | Oaktree’s Wayne Dahl on High-Yield Bonds, Leveraged Loans, Private Credit, and the Recession Yet To Arrive · IDENTIFIED FROM THE TRANSCRIPT
“Yield attractive The other factor that's important to note in high yield is that on average, you can still buy high yield at a discounted price. And that's important in fixed income because that does give you room in the event that a bond were to get refinanced before its maturity. Remember the yield that we're talking about, that call it 7.6, 7.7%, assumes that that bond stays out. And I traded a discounted price. There's room for me to have even greater yield than that 7.6. It might actually mean that on average the market has a yield closer to eight, again, making it quite attractive relative to history. And I think another factor that might get overlooked to some degree is the significant increase in quality in the high yield bond market that we've seen over the last several years. If you remember during COVID in March 2020, we experienced”
2024-07-29 · Forward Guidance · Why Credit Conditions Have Actually Eased Over Past Year | Oaktree’s Wayne Dahl on High-Yield Bonds, Leveraged Loans, Private Credit, and the Recession Yet To Arrive · IDENTIFIED FROM THE TRANSCRIPT
“Well, first of all, Jack, I mean, you're tight compared to history, but I think there's a few things that you have to think about maybe that go just beyond the spread itself. The first thing I would say is the yield on high yield is between seven and a half and eight percent today and over the last few months, which if you did that same analysis, you would find that that would actually appear quite favorable over that same time period, especially if you zoom into the post Finad was really your only source of return. So if rates were 1% and you had that 3.5% credit spread, you'd have a 4.5% yield. So again, about 300 plus basis points behind where that yield is today. So I think the yield alone is a big factor. And I do think that's something that has driven investors to continue to invest in high yield and quite frankly find high.”
2024-07-29 · Forward Guidance · Why Credit Conditions Have Actually Eased Over Past Year | Oaktree’s Wayne Dahl on High-Yield Bonds, Leveraged Loans, Private Credit, and the Recession Yet To Arrive · IDENTIFIED FROM THE TRANSCRIPT
“86% of the time going back to 1998, credit spreads have been wider than that, indicating that the market is quite sanguine about the economic opportunities and that investors are not being paid that much above treasuries. So tell us what is it like to invest in an environment like that?”
2024-07-29 · Forward Guidance · Why Credit Conditions Have Actually Eased Over Past Year | Oaktree’s Wayne Dahl on High-Yield Bonds, Leveraged Loans, Private Credit, and the Recession Yet To Arrive · IDENTIFIED FROM THE TRANSCRIPT