BC Partners' Goldthorpe Says Nature of High-Yield Markets Is Changing

The video discusses the current state of the credit market, highlighting the push into private credit by major asset managers like Franklin Resources. It explores the breakdown of traditional correlations between equity and high yield markets, emphasizing the changing nature of these markets. The discussion also covers investor awareness, the rise of passive management, and the potential for active management to make a comeback. Concerns about infrastructure investment and the broadening definition of infrastructure are addressed, along with the importance of selecting experienced managers. The video concludes with an analysis of expected market volatility and interest rate arbitrage opportunities between Europe and the US.

What recent acquisition by Franklin Resources is considered a watershed moment in the credit market?

• Acquisition of Benefit Street Partners

• Acquisition of BlackRock

• Acquisition of PIMCO

• Acquisition of a local bank

What has historically been the correlation between equity markets and high yield markets during downturns?

• 100%

• 25%

• 50%

• 88%

What is a potential risk if there is a wave of defaults in the investment-grade market?

• High yield market will absorb it easily

• High yield market may be overwhelmed

• No impact on the high yield market

• Increase in equity market prices

What is a key concern when investing in infrastructure funds?

• High returns

• Stable returns

• Understanding the true nature of assets

• Low volatility

Why is it important to choose experienced managers for infrastructure investments?

• They are new to the market

• They are cheaper

• They offer higher returns

• They have a proven track record through different cycles

What is expected to happen to market volatility in the near future?

• It will increase

• It will remain the same

• It will decrease

• It will disappear

What is the potential return from swapping a European bond into US dollars due to interest rate differences?

• 50 basis points

• 200 basis points

• 325 basis points

• 100 basis points