In this Q&A Tod Trabocco, managing director who oversees Cambridge Associates’ global private credit efforts, discusses current market conditions, takes a peek into the future, highlights the specialty finance opportunity and cautions against trying to predict the next recession. A few highlights of Trabocco’s commentary include:
- “Times are bound to get more interesting for private debt investors in the near future as the market reacts to rising interest rates, rising defaults and the rude awakening of marginal, somnambulist borrowers.”
- “[Private debt industry] consolidation seems inevitable. Whenever there is a new industry, or one that is growing at light-speed, a shakeout eventually occurs as marginal or high-cost providers eventually exit.”
- “It’s tough to have a broad credit crisis in the US without a recession. Unfortunately, predicting recessions is a fool’s errand. All we can do is track the meaningful indicators and assess them in a historical context.”
Read the full article here.