Bull Run in Loans Slams CLO Equity Buyers, Says Eagle Point’s Majewski
About this episode
Tom Majewski discusses the challenges facing collateralized loan obligations and the impact of the bull market on equity losses.
Collateralized loan obligations face a second straight year of equity losses, according to Eagle Point Credit Management, a major buyer. “Where we stand right now, it’s certainly possible,” Tom Majewski, the $14 billion private-credit manager’s founder and managing partner, says in this episode of the Credit Edge podcast, when asked about the chance of negative returns. “While there were some credit problems, oddly the bigger issue was the bull market and repricing of loans,” Majewski tells Bloomberg News’ James Crombie and Bloomberg Intelligence’s Reto Bachmann. They also discuss software-loan stress, business-development-company turmoil, lower returns in significant risk transfers and how Eagle Point is diversifying into hard assets like midmarket infrastructure lending. See omnystudio.com/listener for privacy information.
People in this episode
Hosts: James Crombie, Reto Bachmann
Guest: Tom Majewski
Topics covered
- collateralized loan obligations
- equity losses
- private credit
- loan repricing
- infrastructure lending
Mentioned in this episode
Organizations: Eagle Point Credit Management, Bloomberg News, Bloomberg Intelligence
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