Dan Ivascyn

Frictions are going to increase.

You're even seeing at the local political level some pushback, and that bears watching as well.

So it may be bumpy in terms of actual implementation, but the bottom line, to keep it simple, for a long time, there was very little issuance.

During COVID, lots of companies were able to term out their debt.

So everyone's been, well, why are high yield spreads and IG spreads so tight?

Well, there hasn't been a tremendous growth of issuance.

No new product until recently.

And this is concentrated within the tech space.

That's great for an active manager in that for the first time in a long time, you know, there's all this froth in private credit.

People falling all over themselves to do deals.

you know, those that were borrowing didn't have to give on terms because there are plenty of people out there raising money to give them.

Oh, this is competition for private credit investors.

Well, it's so big now that the capital needs are so large relative to the amount of money we all have.

So everybody could eat.

Everyone could eat and we could go out there and actually drive terms.

Now, that doesn't mean you like every deal because again, this dynamic that if I'm a bond

At best, I get my coupon and I get par back.

And these companies, although they're doing great things, they're going to lead to better productivity, all of them haven't figured out how to make money yet.

So it's a great opportunity because for the first time, we can look at 10, 15, 20 deals, and that's probably what we have in our pipeline today, some of which are on the order of $20, $30, $40 billion in size.

Those are great deals where you can come in, you can do very precise underwriting, you can look to create structures that insulate our shareholders from some of those longer term AI related risks and end up with the spread on the deals we like at a significant pickup to your typical investment grade bond or your typical