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 – 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 – Forward Guidance — Transcript

Market views

Bullish

HIGH YIELD BONDS— High yield bonds are seen as attractive due to favorable yields, low defaults, and increased quality at the higher end of the market.
STRUCTURED CREDIT— Structured credit market is seen as having relatively attractive pricing.
NONAGENCY RMBS— Nonagency RMBS is considered a pretty attractive place right now.
DATA CENTERS— Data centers in commercial real estate are growing and need financing.
ASSET BACKED SECURITIES— Asset backed securities may benefit from the fiber being put into data centers.
POWER GENERATION COMPANIES— Companies focused on power generation are needed for data centers.
PRIVATE CREDIT— Private credit has provided good excess return and has been a solution to challenging issuers in the loan market.

Bearish

SPECIALTY RETAIL— Specialty retail is seen as an area with a greater chance of volatility due to its tie to discretionary spending.
OFFICE SPACE IN COMMERCIAL REAL ESTATE— Office space in commercial real estate is under stress and has not done well.

Not investment advice.

Mentioned

Market views