Matt Stewart on Credit MarketsMatt Stewart on Credit Markets

At Schwab IMPACT, Matt talks about how Oaktree Capital Management is currently identifying compelling opportunities in private credit, particularly due to the recent rise in base rates. In the current higher-rate environment, yields in private credit, specifically for first lien paper, are ranging from 12% to 13%, offering attractive investment prospects. Despite a temporary slowdown in sponsor LBO activity attributed to market volatility, Oaktree Capital Management anticipates increased activity in the coming quarters and years, emphasizing the growing significance of private credit in a financial landscape where banks are progressively retreating from the space.