DK Extra Credit

In this episode, Suzy Gibbons, Partner and Head of Research, sits down with Tony Yoseloff,  Managing Partner and Chief Investment Officer, to discuss how dislocations in private equity and direct lending – driven by higher interest rates, excessive leverage and delayed defaults – are creating what we view as a large and growing opportunity set. They explore how opportunistic credit can enhance por...

We believe we are in the early innings of a capital structure reset. Higher-for-longer rates, refinancing pressure, and aging private equity portfolios are reshaping capital needs, creating what we view as a compelling backdrop for opportunistic credit.   In our latest white paper, Optimizing the Efficient Frontier: Opportunistic Credit Amid a Capital Structure Reset , we explore why this backdrop...

In this episode, Suzy Gibbons, Partner and Head of Research and Patrick Dennis, Co-Deputy Managing Partner, examine the increasingly commoditized nature of corporate direct lending—which we believe is characterized by tighter spreads and weaker recoveries—and contrast it with select areas of private asset-based finance.  They highlight potential opportunities in U.S. second-lien residential mortga...

Triggered by the rapid expansion of direct corporate lending over the past decade, competition across the leveraged credit landscape has intensified — contributing to weaker credit documentation, compressed spreads, and declining recovery rates. In our latest white paper, Rapids of Private Credit: Opportunities in the Eddies of ABF , we explore how certain pockets of private asset-based finance —...

The sharp repricing of commercial real estate (CRE) across sectors and regions – triggered by steep interest rate hikes that began in 2022 – marks a structural reset leading to more differentiated outcomes for real estate investors. In our latest white paper, we explore how this environment creates an ideal setting, in our view, for alpha generation for investors with nimble capital and structurin...

Market fragmentation, lower valuations, and scarcer private institutional capital, in our view, make Europe an attractive market for flexible capital providers. In our white paper, we examine these and other factors and make the case that Europe offers compelling investment opportunities even amidst heightened volatility around tariffs and the trend toward deglobalization. Read the white paper her...

The environment of higher rates, inflation and deglobalization has resulted in elevated idiosyncratic risk and, in turn, an improved opportunity set for absolute return strategies. In our white paper, we examine the performance of absolute return strategies across different rate environments. Since 1990, absolute return strategies generated on average 52% higher excess returns above the three-mont...

In 2023, credit markets appeared to be on the verge of an “old-fashioned” distressed cycle due to higher base rates and elevated leverage. Leveraged loan defaults have risen since then, largely dominated by liability management exercises (LMEs). However, this has been far from uniform. There is significant dispersion in default rates, prices and recoveries across different parts of the corporate c...

How do investors find opportunity in complexity?  Join Davidson Kempner’s Head of Research for in-depth analysis of global markets and investment considerations.  In this podcast, we go beyond the headlines and market chatter to share the insights and opportunities that are driving discourse at Davidson Kempner.  Join us as we break down the numbers, analyze trends, and offer a behind-the-scenes l...