When the credit cycle turns, “the game will be over” for some private debt funds that are overly exposed to weak companies, according to Silver Point Capital. “We see every deal that’s getting done — there’s some good deals and there’s some bad deals,” Michael Gatto, the firm’s head of private side businesses, tells Bloomberg News’ Irene Garcia Perez and Bloomberg Intelligence’s David Havens in the latest Credit Edge podcast. “If someone is doing too many bad deals, they won’t exist,” says Gatto, referring to what generally happens when debt market liquidity dries up. Gatto and Havens also discuss Silver Point’s approach to private credit, the growth of liability management exercises and disqualified lender lists.