AI Technology & Market - The speaker expresses excitement about AI technology and the investments being made to deploy it in enterprises, anticipating significant productivity gains [4] - The market is currently optimistic about AI, potentially underestimating risks and overestimating the speed of adoption; adjustments and volatility are expected [5] - Despite potential short-term volatility, the long-term secular trend of AI is expected to bring extraordinary economic benefits and productivity gains [13][15] - Some AI-related assets may be overvalued, with earnings not meeting current expectations, which is typical in acceleration cycles [18] Capital & Financing - Hyperscalers are investing more of their substantial cash flow into AI projects and are considered financially strong [9] - Data center financing is viewed as real estate deals, with debt serviced by the output of the data centers, and the creditors are typically large, stable companies [10][11] - Private capital formation in new AI companies involves higher risk, with potential for both significant successes and failures [11][12] - Private credit is a large business, and it's important to differentiate between lending to established companies and financing data centers [21][25] - Underwriting standards and risk management are crucial in credit, and economic contractions will reveal the strengths and weaknesses of different lenders [26][27]

JPMorgan’s mega loans are rewriting the rules of debt markets. Private credit can’t keep up https://t.co/jx4Ts97lNo ...

Private credit is booming, but it's not without risk. Ares Management's Raj Dhanda says this is the moment when experience matters most. From underwriting discipline to navigating rate cuts and illiquidity risk he joined Bloomberg Open Interest to break down how Ares is positioning for the next phase of the credit cycle, and why he thinks private markets still have plenty of upside. ...

The global financial stability watchdog have vowed to double down on efforts to better assess the risk from private credit and stablecoins in 2026 and explore ways to modernize financial regulation in general. https://t.co/pt2uTrA3Qx ...

Private Credit Becomes Core as JPMorgan Rethinks 60/40 Model https://t.co/kHEgMGyIW0 ...

Hey, Carl. Uh, I have learned from people familiar with the matter that Blue Owl has decided to call off its private credit funds merger. This is something we've been talking about all week. You all have been talking about all week. This controversial combination of one of its non-traded funds, Blue Owl Capital Corporation 2, with its bigger publicly listed vehicle, Blue Owl Capital Corp. News of the merger, if you recall, restricted investors from redeeming uh from the semi-liquid non-traded fund, the one ...

Core Insights - The article discusses the growing interest in collateralized loan obligations (CLOs) and the recent trend of launching exchange-traded funds (ETFs) that invest in CLOs, highlighting their appeal due to high yields in a rising interest rate environment [2][3]. Group 1: Market Trends - Issuers are increasingly entering the CLO ETF market, with Janus Henderson and Reckoner Capital Management recently proposing new CLO strategies [2]. - The appeal of CLO ETFs is attributed to their high yields compared to other bond funds, particularly during a period of high interest rates [2][3]. Group 2: Investment Strategies - Janus Henderson's new fund will focus on AA- and A-rated CLOs, which carry higher risk than AAA-rated bonds but offer the potential for higher returns [3]. - The first CLO ETF launched by Janus Henderson, JAAA, provides access to a diverse range of CLOs, allowing investors to benefit from corporate loan repayments [3]. Group 3: Performance Metrics - The three largest CLO ETFs currently include Janus Henderson's JAAA with approximately $25 billion in assets and a year-to-date increase of 3.8%, PGIM's PAAA with $4.5 billion in assets and a 4.3% increase, and iShares' CLOA with $1.3 billion in assets and a 4.2% increase [5]. Group 4: Risk Considerations - There is a noted risk associated with investing in lower-grade loans within CLOs, and investors are advised to conduct thorough due diligence, particularly with smaller CLO names [4].

When I wrote about Ares ( ARES ) back in April, I saw an opportunity to buy into a leading name in the private credit space following a sharp sell-off in the stock. Since myProfessional equity portfolio manager for a boutique buy-side asset manager.My focus is on finding high-quality companies, applying a disciplined approach to valuation and identifying underappreciated opportunities. My goal is to identify opportunities in cash-rich companies with strong balance sheets and shareholder friendly policies. I ...

Core Insights - The article discusses the importance of enabling Javascript and cookies in browsers to ensure proper functionality and access to content [1] Group 1 - The article highlights that users may face access issues if they have an ad-blocker enabled, suggesting the need to disable it for uninterrupted service [1]

Stocks are overpriced. Bonds are overpriced. And private assets are a powder keg. This is the view of Jeffrey Gundlach, the founder and CEO of DoubleLine Capital.@TruthGundlach joins @‌thestalwart and @‌tracyalloway on the Odd Lots podcast to discuss how private credit is showing signs of trouble https://t.co/qoGXjc1GMM ...