Our annual conference in Los Angeles convened against a backdrop of persistently elevated interest rates and geopolitical fracturing. The consensus among allocators was one of profound caution.
For the past fifteen years, distressed debt was an anomaly. Zero Interest Rate Policy allowed zombie corporations to refinance indefinitely. That era has abruptly concluded. The 'wall of debt' maturing between 2026 and 2028 is staggering.
While public equities appear fully priced, the private credit markets are offering generational entry points.