Blackstone's Scott Says Credit Risk Better Than Equity Risk Amid Volatility

The video discusses the current state of default rates in high yield and loan markets, noting that they are below historical averages. It highlights market stability, with debt to EBITDA ratios at their lowest since 2018. The speaker argues that credit risk is preferable to equity risk in volatile markets, citing historical data from the financial crisis. Future default rates are expected to rise as the Fed softens its stance, but the market remains stable for now.

What is the current default rate in the high yield and loan markets, and how does it compare to the historical average?

What is the significance of the debt to EBITDA level mentioned in the text?

What factors contribute to the perception of credit risk as a defensive strategy in the current market?

How did the default rates during the great financial crisis compare to the current market conditions?

How long does it typically take for the default rate to reach its peak after the Fed softens its stance?