James Keenan

Credit Outlook | Milken Institute Global Conference 2024

Michael Milken, James Keenan, Victor Khosla, Marc Lipschultz, Purnima Puri

Leading institutional investors from BlackRock, Blue Owl Capital, Strategic Value Partners, and J.P. Morgan Partners outlined a rigorous selection framework that targets only 2% to 5% of reviewed deals to navigate a "higher for longer" interest rate environment. Panelists emphasized that private credit offers superior covenant protection and recovery rates compared to public markets, positioning it as a permanent portfolio diversifier rather than a temporary boom as bank deleveraging drives capital toward asset managers. Looking ahead, industry leaders anticipate a multi-year opportunity in distressed debt and non-sponsor financing, where operational involvement and strict governance will define success amid projected $600 billion in annual maturities.