Market Trends - Private credit firms are offering leverage as a benefit to potential borrowers due to steep competition from the broadly syndicated market [1]

Blackstone has signed a private credit partnership with Legal & General Group that the two firms aim to grow to up to $20 billion over the next five years, according to a Blackstone spokesperson https://t.co/XgZIxY1GDO ...

Welcome back. NASDAQ hitting a record high today. Nvidia becoming the first company ever to reach $4 trillion in market cap.Question now, should you continue to lean into that trade or diversify elsewhere. Joined now by Elizabeth Burton, chief investment strategist for Goldman Sachs Asset Management. Welcome back.It's good to see you. Good to see you. You're on the diversification train, right.Don't don't just lean into tech or or large cap. We're always on the diversification train. Yeah, but I mean, you k ...

Core Viewpoint - Citigroup Inc. shares reached a new 52-week high of $88.82, closing at $87.60, with a 35.3% increase over the past year, compared to the industry's 41.2% growth [1][9] Financial Performance - Citigroup passed the Federal Reserve's 2025 stress test, indicating strong capital to absorb significant losses [4] - The company plans to increase its quarterly dividend by 7% to 60 cents per share starting in Q3 2025, pending board approval [5] - Citigroup's current dividend yield is 2.56%, higher than Wells Fargo's 1.94% and Bank of America's 2.14% [6] Capital Management - Citigroup has a $20 billion stock repurchase program, with $1.75 billion in shares bought back in Q1 2025 and a similar target for Q2 [7] - As of March 31, 2025, Citigroup's cash and investments totaled $761 billion, with total debt at $317.5 billion, indicating a strong liquidity position [8] Business Restructuring - The company is simplifying its governance structure, reducing management layers from 13 to eight, and has announced plans to eliminate 20,000 jobs over two years, saving $2-2.5 billion annually by 2026 [10][11] - Citigroup is exiting consumer banking operations in 14 markets, having successfully exited in nine countries, which is expected to free up capital for higher-return segments [12][16] Revenue Growth - Citigroup's net interest income (NII) has a CAGR of 8.4% from 2020 to 2024, with expectations of a 2-3% increase in 2025 [16][17] - The company is expanding its presence in private credit through partnerships, including a $25 billion direct lending initiative with Apollo Global Management [18][19] Estimates and Valuation - Consensus estimates suggest a 3.5% and 3.2% increase in sales for 2025 and 2026, respectively, with earnings expected to rise by 23.2% and 27.6% [20] - Citigroup's current P/E ratio is 10.46x, lower than the industry average of 15.06x, indicating a potentially undervalued stock [22][25] Strategic Outlook - Citigroup's strong capital levels, operational efficiency improvements, and strategic exits position it for long-term growth, despite rising expenses and a complex overhaul plan [26][27]

Core Insights - Blue Owl Capital Inc. has launched the Blue Owl Credit Income Fund AUT (OCIC-A) in partnership with Koda Capital, targeting Australian financial advisors and their clients [1][2] - The fund aims to provide access to private credit solutions, focusing on generating income through a diversified portfolio of senior secured, floating rate loans to U.S. middle and upper middle-market companies [3][4] Group 1: Company Overview - Blue Owl Capital is a leading alternative asset manager with $273 billion in assets under management as of March 31, 2025, investing across Credit, Real Assets, and GP Strategic Capital platforms [7] - The company emphasizes delivering institutional-quality private market solutions and aims to redefine alternative investments [6][7] Group 2: Partnership and Strategy - The collaboration with Koda Capital, which manages over A$14 billion in client assets, is a strategic move for Blue Owl's expansion into the Australian market [2][5] - Koda Capital is recognized for its client-first approach and innovative investment solutions, enhancing the credibility of the fund offering [2][9] Group 3: Fund Details - The OCIC-A fund is designed to provide consistent income and capital preservation, appealing to high-net-worth and sophisticated investors seeking differentiated global alternatives [3][4] - Channel Capital's subsidiary, Channel Investment Management Limited, acts as the Responsible Entity for the fund, ensuring compliance and risk management [5]

Deutsche Bank AG and SeaTown Holdings International are among the lenders providing a $510 million private credit loan to VinFast Auto Ltd., according to people familiar with the matter. https://t.co/Jo5FkBqvBN ...

The market is warming to large private credit deals in India, where local borrowers are typically less levered than their peers in the rest of Asia https://t.co/1nTwfaw4lQ ...

Core Insights - BlackRock Inc. has completed the acquisition of HPS Investment Partners, marking a significant move into the private credit market, which is becoming increasingly lucrative in global finance [1][12]. Private Credit Market - The private credit sector is reshaping financial markets and facilitating the convergence of public and private markets, with capital markets becoming the primary financing avenue for asset managers [2]. Strategic Initiatives - To leverage opportunities in private credit, BlackRock is launching Private Financing Solutions (PFS), which will integrate its private credit, GP, LP solutions, and both private and liquid CLO businesses [3]. Financial Projections - The acquisition of HPS is projected to increase BlackRock's private markets fee-paying assets under management (AUM) by 40% and management fees by 35%. In 2025, HPS is expected to contribute approximately $850 million in base fees and nearly $360 million in post-tax fee-related earnings (FRE) at a 50% margin [4][12]. Growth Targets - BlackRock aims to raise $400 billion in private markets fundraising by 2030 as part of its strategy to enhance private credit capabilities [5]. Recent Acquisitions - In March 2025, BlackRock acquired Preqin to improve its private markets data offerings and previously acquired Global Infrastructure Partners to enhance its infrastructure capabilities [6]. AUM and Revenue Growth - BlackRock's AUM has shown a five-year compound annual growth rate (CAGR) of 9.2%, reaching a record $11.58 trillion as of March 31, 2025, with net inflows of $83 billion [7]. Product Diversification - The company is diversifying its product suite, which is expected to bolster revenue mix and reduce revenue concentration risk, aiding AUM growth [9]. Dividend and Share Repurchase - BlackRock announced a 2% increase in its quarterly dividend to $5.21 per share and has a share repurchase plan aiming to buy back $1.5 billion worth of shares in 2025 [14][18]. Analyst Sentiment - Analysts have revised the earnings per share estimates for 2025 and 2026 upward to $44.92 and $50.71, indicating positive growth expectations [19]. Valuation Metrics - BlackRock's price-to-book ratio of 3.39X is lower than the industry average of 3.73X, suggesting the stock is trading at a discount relative to expected earnings growth [25][27].

We're speaking with the SEC chairman Paul Atkins and we're thrilled to have him at the table. I have a question because about insider trading, an issue that the SEC has always sort of oversaw, but there hasn't been a huge number of insider trading cases uh in recent years. I mean, not not big famous ones, but there's this whole crypto industry that is not really regulated.And I'm curious what you think of that, which is to say that there's lots of people doing things. And I the reason I mentioned this is th ...

The tie-up between private-credit specialist HPS and BlackRock, the world’s largest asset-management company, points to the shifting power dynamics on Wall Street https://t.co/0fCtMW1fac ...