WEBVTT

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Over the past five years or so,
there's been

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a pretty radical transformation
in the credit markets.

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On the public side,
you see the advent of portfolio trading

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that's injected more liquidity
into the public credit system.

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But credit itself
has really changed as well.

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You've seen a lot more lending
to asset-light businesses.

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That means recovery rates
should be much lower.

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You're seeing a lot more LME.

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So, liability management exercises
where, credit

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holders
are being disadvantaged often times.

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And so the marketplace
is much more fraught today as a result.

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And I think it requires
a lot more deep credit understanding

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to not only take advantage
but avoid the pitfalls.

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I think the risk

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of continuing
to think about credit in separate buckets

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is the risk of leaving alpha on the table.

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The credit market
increasingly is melding together.

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I think it's really important
for investors to take advantage

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of the opportunities across the gap.

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What we see in our own portfolios,
public bonds

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are getting refinanced into privates.

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Privates refinance into publics.

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You have ABF, which is the bridge of both.

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And so we think it's really important
for investors

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to have the ability
to take advantage of that relative value.

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Well, you know, there's

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a classic bond market phrase,

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which is there's no such thing as bad
bonds, just bad bond prices.

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So, in a volatile time,

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that's actually
when credit is most attractive.

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When credit is placid
and spreads are tight and yields are low,

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that's when we find the credit markets
least attractive.

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Now that we're seeing the volatility
and the repricing,

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we're actually more excited
around credit, not less.