Traci Alloway

Hello and welcome to another episode of the All Thoughts Podcast.

I'm Traci Alloway.

Joe, I think it's fair to say that if we didn't have the situation with Iran, we would be talking a lot more about private credit.

Right.

So I love that you said something between a hiccup and a blow up, because this is the difficulty I have in talking about the private credit space at the moment, which is you either find people who are often very close to the private credit industry or in it.

who will argue that this is just, you know, a tiny bump in the road.

This is maybe a few cockroaches, like nothing to worry about, although a single cockroach would worry me in my own household.

But anyway, or you get doomsayers who are like, this is financial crisis 2.0, right?

And it's very difficult to find nuanced commentary in between.

That's right.

OK, so we're trying to rise to the occasion with some nuanced commentary on private credit.

And trust me, I have watched and seen and read a lot of things on this topic.

And one thing that stood out in particular to me was a particular seminar or lecture that came out from a firm called Osterweiss recently.

And we had a couple of old school bond hands talking about the rise of private credit and how to think about it in the context of the history of the bond market.

And this is something that I think is often missed is what exactly is private credit's role when you think about overall corporate credit?

Well, I was going to say also from the perspective of the issuer.

Because the issuer, if you're a company looking for financing, you have a bunch of different choices.

And one of the ones that has become very popular in recent years is

is private credit.

And in fact, I mean, there's a dynamic here where both investors are demanding it, but issuers are also very, very happy to lend into that market for various reasons that we are about to get into.