Credit Spreads to Widen in 2023: Oaktree's Panossian

The video discusses the current economic downturn and its impact on credit spreads, highlighting the volatility expected in 2023 due to factors like commodity and labor cost inflation. Despite these challenges, there are opportunities in the credit market, particularly in high-quality, high-yield bonds and private credit markets. The speaker emphasizes the importance of careful selection in this credit pickers market, noting the attractive returns available for companies unlikely to default. The discussion also covers the dislocation in private credit markets and the changes in direct lending dynamics.

How has the percentage of double B rated high yield bonds changed recently?

What is the impact of banks stepping away from large cap direct lending?