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.

<p>When the credit cycle turns, &ldquo;the game will be over&rdquo; for some private debt funds that are overly exposed to weak companies, according to Silver Point Capital. &ldquo;We see every deal that&rsquo;s getting done &mdash; there&rsquo;s some good deals and there&rsquo;s some bad deals,&rdquo; Michael Gatto, the firm&rsquo;s head of private side businesses, tells Bloomberg News&rsquo; Irene Garcia Perez and Bloomberg Intelligence&rsquo;s David Havens in the latest Credit Edge podcast. &ldquo;If someone is doing too many bad deals, they won&rsquo;t exist,&rdquo; says Gatto, referring to what generally happens when debt market liquidity dries up. Gatto and Havens also discuss Silver Point&rsquo;s approach to private credit, the growth of liability management exercises and disqualified lender lists.</p>

The Credit Edge reviews the top credit news of the week and looks at the week ahead, with in-depth research of the most important corporate sectors, trends and themes. Analysis of specific corporate bonds and credit default swaps is backed by Bloomberg Intelligence's robust data sets and indexes.

<p>The Credit Edge reviews the top credit news of the week and looks at the week ahead, with in-depth research of the most important corporate sectors, trends and themes. Analysis of specific corporate bonds and credit default swaps is backed by Bloomberg Intelligence's robust data sets and indexes.</p>

The Credit Edge by Bloomberg Intelligence

Silver Point Sees ‘Game Over’ for Some Private Debt Funds When Cycle Turns

https://api.omny.fm/orgs/e73c998e-6e60-432f-8610-ae210140c5b1/clips/708aa72d-6bcb-4ab8-aac0-b300010bac4a/transcript

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