Credit Investing in a Post-Pandemic World | #𝐒𝐀𝐋𝐓𝐍𝐘

TL;DR

Credit managers discuss the impact of the pandemic on the credit space and highlight the need for flexibility and creativity in investing strategies.

Transcript

good morning everyone and welcome to salt day two thank you for joining us so early my name is maylie da silva vince and i'm the chief compliance officer of vervet capital we are a alternative credit fund based right here in new york city and we partner with governments globally to bring complex initiatives to fruition by conquering inefficiencies ... Read More

Key Insights

• 🪡 The pandemic has highlighted the importance of liquidity and the need for flexibility in credit investing.
• 👶 Evaluating credit in uncertain times requires adjusting models and considering new factors, such as labor dynamics and potential shutdowns.
• 🚙 Private credit strategies and vehicles provide opportunities for selective and creative investing.
• 🤕 Inflation and liquidity risks are significant concerns for the credit market heading into 2022.

Questions & Answers

Q: How has the pandemic affected the evaluation of credit and the use of different investment vehicles?

The panelists highlight the need to adjust evaluation models and incorporate more uncertainty into the analysis. They discuss the benefits of using private strategies and vehicles like REITs to deploy capital in illiquid markets.

Q: What are the major risks heading into 2022?

The panelists identify inflation as a significant risk for the bond market. They also highlight the potential liquidity crunch as the credit cycle progresses, and the need for companies to adapt to labor market dynamics.

Q: How has the pandemic changed investor mindset and appetite?

Investors have become more focused on finding private credit opportunities and deploying patient capital. There is also an increased emphasis on liquidity management and understanding the right side of the balance sheet.

Summary & Key Takeaways

• The panelists discuss the macro themes impacting credit, including inflation, geopolitical risks, and supply chain disruptions.

• They share insights into the evolution of credit throughout the pandemic, highlighting the importance of liquidity and the need for selective investing.

• The panelists also discuss the use of different investment vehicles, such as private strategies and public REITs, to navigate the changing credit landscape.