private credit

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X @Bloomberg
Bloomberg· 2025-08-25 02:20
BlackRock paused fundraising earlier this year for its latest Asian private credit strategy amid its merger with HPS Investment Partners, sources said, adding to uncertainties for the firm’s ambitions for the asset class in the region https://t.co/mChlJuWMel ...
Marathon Asset Management CEO Bruce Richards on private credit picture
CNBC Television· 2025-08-20 16:49
Alternative Investments and Private Credit Market - Marathon Asset Management has over $23 billion in assets under management, attracting investments from family offices, wealth channels, insurance channels, and institutional channels [1] - Direct lending and asset-based lending yield 11-12%, while opportunistic credit yields 14-16%, making them more appealing than public credit markets [2][3] - Public credit markets show tight spreads, with investment grade corporate credit at the tightest spread since the 1990s, around the 0 percentile [3] - The high yield bond index OAS (Option-Adjusted Spread) is inside of 300, indicating tight spreads due to a strong economy, corporate earnings, and demand for credit [4][5] Asset-Based Lending (ABL) vs Direct Lending - Asset-based lending (ABL) is lending against hard assets at 65% LTVs, uncorrelated to direct lending which is cash flow based on EBITDA [6] - The correlation coefficient between asset-based lending and direct lending is 04, indicating low correlation despite both being high-yielding asset classes [7] Interest Rate and Economic Outlook - The speaker believes the Fed was slow to raise rates and will be slow to lower them, potentially easing in September 17th after reviewing jobs and CPI reports [9][10] - The current yield curve is V-shaped with SOFR at 435, 3-month bills at 420, 2-year bills at 375, and 10-year notes at 428, which is not normalized and increases government financing costs [11][12] - The speaker suggests the normalized rate for Fed funds should be 3%, given the slowing job growth (35 jobs a month) and economic growth (12% in the first half of the year) [13][14] - The speaker's base case is that economic growth will pick up in the second half of the year, with the front end of the yield curve having 150 basis points to come down [17]
Tastytrade's Tom Sosnoff on IPO market: Years of pent-up demand and 'crazy asymmetric speculation'
CNBC Television· 2025-08-08 11:05
IPO Market Dynamics - Investor appetite for IPOs is picking up, with companies like Figma, Circle, Chime, and Firefly Aerospace experiencing significant gains on their first trading days [1] - The IPO market is experiencing pent-up demand and asymmetric speculation, with abundant capital seeking high-return, low-risk opportunities [2] - Speculative excess is evident in the market, potentially indicating a frothy environment with red flags [3][4] - Post-IPO volatility can reach 100% to 250%, attracting traders seeking to double their investment [5] IPO Pricing and Insider Advantage - Most individuals cannot participate in IPOs directly, focusing on post-IPO trading, particularly in options markets [6] - Underwriters may intentionally underprice IPOs, benefiting investment banks and insiders who hold restricted stock with a typical 6-month lockup period [8] - Underpricing IPOs creates positive PR and allows insiders to benefit from an initial price surge [9] - A small percentage of outstanding shares traded at a high price can significantly inflate the company's market capitalization [10] Retail Investor Access to Private Markets - There's a push to allow retail investors access to private equity, venture capital, and private credit through 401(k)s, traditionally limited to accredited investors [12] - Advocates argue for self-directed investment choices in 401(k)s, allowing individuals to invest in a wider range of assets [13][14] - Opening private markets to retail investors democratizes the process but also introduces new levels of risk due to less stringent disclosure rules compared to public companies [15] - Opening up private markets is expected to increase market efficiency and foster industry growth, despite potential risks [16][17] Private Equity Investment - The argument that private equity outperforms public markets long-term is primarily due to the lack of day-to-day liquidity, rather than inherent differences in the underlying business [19] - The extended duration of private equity funds (e.g., 7 years) reduces the observed volatility in their P&L, potentially masking the true risk [21]
US Treasury Secretary Bessent on US Trade Deals, Federal Reserve, Tariff Rates
Bloomberg Television· 2025-07-23 12:15
US-Japan Trade Agreement - The US and Japan have reached a trade agreement involving reciprocal tariffs, particularly on autos, with Japan proposing an innovative solution involving equity, credit guarantees, and funding for major projects in the US [5][6] - Japan will provide new capital targeted at strategic industries in the US to de-risk supply chains, especially in areas like medicine and semiconductors [6][7] - The agreement includes a 15% tariff rate for Japan, specifically for reciprocal tariffs on autos, which is linked to Japan's innovative financing mechanism [5][6] - The 15% tariff rate for Japan is considered a result of their innovative package, with President Trump pushing them to do even more [10] US-EU Trade Relations - The EU has not yet presented an innovative package similar to Japan's, but trade talks are progressing [11] - The EU is reportedly preparing to impose 30% tariffs on €100 billion (approximately $107 billion USD) worth of goods if no deal is reached [12] - The US views itself as a deficit nation compared to the EU's surplus, suggesting that trade escalations would impact the EU more [13] US-China Trade Relations - The US is in a good place with China and can start moving on to bigger discussions, with the potential for a rebalancing of the US-China relationship [14][15] - The US aims to bring back precision manufacturing and wants China to become more of a consumption economy [15] - Discussions with China will include purchasing agreements, especially for agriculture, with a focus on rebalancing the trade relationship [16][17] - Regular meetings with China are planned, with no desire to decouple but a need to de-risk part of the US supply chain [19] Federal Reserve and Monetary Policy - The Treasury Secretary believes the Federal Reserve's analysis of tariffs is off, as they have seen very little price pressure from tariffs [26] - The Treasury Secretary suggests the Federal Reserve should conduct an internal review to separate monetary policy from other activities [31] - The Treasury Secretary believes that regulation has been too stringent since the great financial crisis, leading to a build-up outside the regulated financial system, with private credit up ten times [36]
X @Bloomberg
Bloomberg· 2025-07-20 11:40
ASIC has been particularly concerned about risks in the property sector, where private credit firms have expanded aggressively in recent years. https://t.co/nHJk62bdxa ...
X @Bloomberg
Bloomberg· 2025-07-16 16:20
Morgan Stanley Chief Executive Officer Ted Pick said “the tide may begin to shift” in the ocean of private credit https://t.co/6N1D8om2v3 ...
X @Bloomberg
Bloomberg· 2025-07-16 11:09
In Going Private, our newsletter on private markets, we look at Jamie Dimon's comments around private credit hitting a "peak" https://t.co/BrwmBrK0PR ...
X @The Wall Street Journal
The Wall Street Journal· 2025-07-15 03:12
Jamie Dimon says private credit is dangerous—but he’s having JPMorgan jump in with a $50 billion bet https://t.co/5Q515Qbzbr ...
5 Things To Know: July 14, 2025
CNBC Television· 2025-07-14 10:58
Five things to know ahead of today's opening bell. Warner Brothers Superman reboot topping the weekend box office brought in $122 million in the United States and Canada in its debut weekend. Its global hall estimated two at $217 million.The movie cost $225 million to produce. Of course, there are marketing costs on top of that. Shoppers spending heavily online from last Tuesday to Friday, what some are calling Black Friday and summer.That was led by Amazon's Prime Day, Adobe Analytics, saying that online s ...
X @The Wall Street Journal
The Wall Street Journal· 2025-07-14 01:46
Jamie Dimon says private credit is dangerous—but he’s having JPMorgan jump in with a $50 billion bet. https://t.co/8PW85wioEP ...