Group 1 - The recent CPI report indicates inflation is at its slowest pace in three months, which may lead the Federal Reserve to consider interest rate cuts beyond the upcoming meetings [1][4][7] - Traders are now expecting nearly four quarter-point cuts by June 2026, reflecting a shift in market sentiment following the CPI data [4][5] - The core inflation rate, excluding food and energy, showed a gain of 0.20%, which is better than expected, reinforcing the case for potential rate cuts [4][10] Group 2 - Concerns are raised about the credit market, with some analysts noting potential cracks due to recent economic data and consumer sentiment [2][31] - The bond market is facing a dilemma as inflation remains elevated above the Fed's 2% target, complicating the rationale for rate cuts [8][10] - The sovereign debt market is expected to crowd out corporate debt due to increased global spending, particularly in developed markets [21][22] Group 3 - The high-yield credit spread is starting to widen, which some view as an opportunity to add selective exposure in certain sectors [31][36] - There is a notable divide in the economic landscape, with larger companies managing better through economic changes compared to small and medium-sized businesses [18][19] - The current economic environment is characterized by a K-shaped recovery, where certain sectors are thriving while others, particularly lower-income segments, are struggling [15][20]

Core Viewpoint - The private-markets firm has experienced a significant decline in its stock this year due to concerns regarding private credit, despite previously enjoying a remarkable rise. Analysts from Goldman Sachs and others now consider the firm to be undervalued [1] Group 1 - The firm has seen its stock tumble this year, indicating a shift in market sentiment [1] - Concerns over private credit have been a major factor contributing to the stock's decline [1] - Analysts from Goldman Sachs and other institutions are now labeling the firm as undervalued, suggesting potential investment opportunities [1]

In Going Private, our twice-weekly newsletter on private markets, we look at how private credit is biting back at critics https://t.co/KvBbBWGPMf ...

Christina Lee, Managing Director and Co-Portfolio Manager for Oaktree's U.S. Private Debt strategy, says mezzanine debt is a niche product attracting renewed interest because it offers fixed rates. She tells Romaine Bostick on "The Close" that investors are drawn to its ability to lock in yields. ...

John, thank you so much for joining this morning. >> Great to be here. >> So, a surge in profits, deals abound, exits were robust.Is this the starting gun fired off. >> It does feel a bit of that. Uh Danny, it's great uh to be here to be talking about it.We had a heck of a quarter. What we saw here was we delivered for our customers. That's the most important thing in terms of returns.We really leaned into digital and energy infrastructure. We also saw big inflows as well, 50 plus billion dollars and all of ...

Core Insights - Recent success in the financial sector is primarily driven by a boom in private credit rather than equity markets [1] - There are indications that the current trend in private credit may have reached a peak or "baroque period" [1] Private Credit Boom - The growth in private credit has significantly outpaced traditional equity investments [1] - This shift suggests a changing landscape in investment strategies and opportunities within the financial industry [1]

Private credit isn't in trouble, but it's changing. James Reynolds, the Global Co-Head of Private Credit at Goldman Sachs Asset Management says future returns will vary widely as the field gets crowded and less experienced. His message: discipline, selectivity, and patient capital win out. He joined Bloomberg Open Interest to talk about why established players with strong platforms will still hold the edge. ...

Joining us now first on CNBC Lazar chairman and CEO Peter Orzag. Peter was also the former director of the office of management and budget during the Obama administration. Peter, it's good to see you.Thank you for joining us. Uh we don't normally do this. >> Uh but perhaps you start on the restructuring side of your business because you have such a unique insight into what's going on there.Um what are you seeing in terms of the pipeline there. uh what is the dialogue with clients and customers in light of s ...

Core Insights - The restructuring liability management practice has seen a significant increase, indicating a robust demand for advisory services in this area despite some high-profile bankruptcies [2][5] - The current environment shows a wide dispersion in firm performance, allowing for mergers and acquisitions to coexist with active restructuring efforts [3][5] - The financing markets are generally accommodating, with tight risk spreads and a more favorable regulatory environment compared to previous administrations [7][8] Restructuring and Liability Management - There is a notable rise in liability management activities, which help companies avoid bankruptcy by restructuring their debts [4][5] - The majority of current activity is focused on liability management rather than formal bankruptcy proceedings, suggesting a proactive approach by firms [5][10] Deal Advisory and Market Conditions - The government shutdown is temporarily affecting the closing of some transactions but not the initiation of new deals, indicating resilience in the deal-making environment [6] - Financing is readily available for deals, supported by tight risk spreads and a more accommodating regulatory landscape [7][8] Geopolitical Considerations - Geopolitical factors are increasingly influencing business decisions, with firms needing to account for these risks in their strategies [11][12] - The oil market is experiencing modest price effects, with potential pressure on oil-producing countries to increase production in response to rising core inflation in the US [13][15]

Core Insights - The recent bankruptcies of auto lender Tricolor and auto-parts manufacturer First Brands have been misattributed to the private credit market, according to Blackstone executives [1][2][5] - Blackstone's CEO Steve Schwarzman emphasized that these failures are linked to bank-led credits rather than private credit, specifically citing over $2 billion in asset-backed securities arranged by major banks [3][4] - Despite a late-credit cycle leading to potential increases in defaults, Blackstone maintains that these bankruptcies are isolated incidents and do not reflect broader credit market issues [5][6] Private Credit Market Overview - Blackstone's non-real estate credit assets under management rose to $432.3 billion, with $36 billion in inflows during the last quarter [6][12] - Including real estate credit, Blackstone manages $500 billion in credit, an 18% increase from the previous year, making credit approximately 40% of its total $1.24 trillion in assets [7] - Retail investors contributed $3.6 billion in inflows to Blackstone's BCRED, its largest private wealth vehicle, which now has nearly $85 billion in assets under management [12] Performance and Expectations - Blackstone expects strong inflows in credit despite lower yields, as the firm anticipates continued interest from private wealth channels [13] - The firm reported returns of 2.6% for private credit and 1.6% for liquid credit in the last quarter, with BCRED having a 97% floating rate [14] - Historically, Blackstone has maintained low annual losses, averaging just 0.1% even during financial crises, and its investment-grade focused private credit platform has experienced zero realized losses to date [15][17]