‘Who’s the Next Winner?’: Diameter Capital’s Scott Goodwin
Episode publishedPodcast: Goldman Sachs ExchangesGoldman Sachs Exchanges
Transcript preview
Preview only
Welcome back to another edition of Goldman Sachs Exchanges, Great Investors. I'm Michael Brammeyer, Global Head and Chief Investment officer of the External Investing Group at Goldman Sachs Asset Management and your host for today's episode. Today, I'm delighted to sit down with Scott Goodwin, the co founder and managing partner of Diameter Capital Partners. Scott, alongside Jonathan Lewinson, established Diameter Capital in 2017, building an alternative asset management firm which now manages approximately $25,000,000,000 in assets. Diameter Capital is best known for its distinctive approach
Thanks for having me, Mike. It's a real privilege.
So I want to start today talking about today's credit landscape. Right now, we're talking about spreads are at about 3%, the ninetieth percentile. The private credit markets are wide open, you might even say booming. And defaults overall seem like they're relatively in check despite a couple of high profile defaults. So the high level stats are looking pretty good, but there are a lot of signs of stress out there. So you guys are professional skeptics. You make your money by looking at the downside and forecasting the downside, and you've done so successfully for a long period of time. Where a
Sure. We've been spending a lot of time recently and my partner, John Lewinson, who I founded the firm with, spends a little more time on this than I do. He's more on the research and macro background. But we've spent a lot of time on the consumer in The US. Everyone knows the low end consumer has been doing poorly. That's been true for a number of years. Now that's crept into the 20 who aren't getting jobs out of college. What's interesting is if you ask the large banks, the JP Morgan, the BofAs, how's the consumer doing? Their data would tell you that credit balances aren't up that much. Rig
Yep.
And we're bouncing along at really low level right now that is interesting because there's a lot of debt in the left in market in that sector. And we think there's an opportunity there as the Trump administration and others do things to unlock the velocity of the housing market
Yep. To
put capital to work. So that's a space we see issues in, and we like to think about where there are cyclical issues, where there are secular issues. That strikes us as cyclical.
Mhmm.
Keep exploring with a free account.
A free account preserves the short preview. Upgrade to Pro for the full transcript and episode chat.