Next up in our series of notes from the Alpha Hedge West Conference is the Opportunistic Credit Roundtable featuring Emanuel Friedman of EJF Capital, Andrew Springer of Marathon Asset, Ronnie Jaber of Carlyle Group, and Avery Kiser of Neuberger Berman Alternatives.
Opportunistic Credit Roundtable
EF> Banking going through greatest changes since the 1930's. Financials are being turned into utilities by turning them 100% capital requirements.
AS> Regulation is creating dislocations in markets. GSEs responsible for 90% of mortgage originations.
RJ> Direct lending is an area of opportunity.
EF> Change with Fannie and Freddie will be greatest change ever in mortgage market.
Moderator Mark Okada (Highland Capital) > How are people addressing rising rates?
AS> Hard to predict long end of curve. Focusing on trends less impacted by long end of curve like distressed debt. Likes credit. Stay away from duration.
EF> Sees all as regulatory trade. Wants bank or insurance companies to buy it from them.
RJ> Technicals bad on high yield. Likes floating and credit. Munis are largely retail driven. Lots of volatility and lack of strong bid.
Be sure to check out the rest of our summary of the Alpha Hedge West Conference.
