Justin Slatky
Showing 1–4 of 4 transcripts.
- Milken Institute1h 2m
Credit Is a Cycle: Finding Opportunity in Turmoil
Lisa Abramowicz, Glenn August, Amy McGarrity, Don Mullen, Justin Slatky
A panel of credit experts including Don Mullen, Justin Slack, Glenn August, and Amy McGarrity debated the trajectory of a nascent distress cycle, with consensus that extraordinary stimulus has delayed but not prevented elevated default rates in sectors like commercial real estate and airlines. While market structure differs from 2008 due to CLO characteristics preventing forced selling, underwriters degraded standards on floating-rate products, creating significant risks in BBB-rated debt and low-quality assets. Participants outlined divergent strategies ranging from mid-cap nimbleness to large-scale capital control, projecting substantial returns in private credit and residential distress while warning that liquid fixed income yields are insufficient for long-term liability goals without opportunistic risk.
- Milken Institute1h 2m
Credit Markets: Back to Neutral?
Mary Childs, Michael Buchanan, Mike Damaso, Jude Driscoll, Justin Slatky, Anne Walsh, Mike Buchanan
Panelists at this December 2018 credit market forum identified an extended credit cycle and deteriorating covenant quality as primary drivers of systemic risk, highlighting the fragility of the BBB sector and the shift from bank-driven to buy-side storage businesses. The discussion detailed specific vulnerabilities such as a looming "wall of maturities" for fallen angels, potential liquidity mismatches in the burgeoning private credit market, and regulatory constraints that have stripped dealers of their traditional role as market stabilizers. Ultimately, active managers were advised to monitor corporate leverage ratios and new issuance structures for early distress signals, positioning themselves to capitalize on anticipated volatility and generate alpha during the next downturn.
- Milken Institute1h 11m
Reading the Tea Leaves: Where Are Markets Headed?
Stephanie Ruhl, Justin Slatky, Morris Mark, Jim Latinsky, John Kalamos, Michael Sembelos
Leading investors from Shankman Capital, JHL Capital, and Kalamos Investments convened to assess a market characterized by compressed high-yield spreads and S&P valuations nearing historical peaks amidst an unprecedented era of negative real rates. Panelists identified critical risks including a surge in triple-C rated leverage, covenant-lite structures, and aggressive small-cap multiples, while projecting that future equity returns will likely rely primarily on earnings growth rather than multiple expansion. Despite these warnings regarding a potential shift in capital flows to overvalued segments, the group maintained a cautiously bullish outlook with a consensus expectation of strong long-term equity returns driven by diversification and avoidance of leverage.
- Milken Institute53 min
Evolving Opportunities in Capital Markets (updated)
Mark Attanasio, Colleen Campbell, Lowell Kraff, Soren Reynertson, Justin Slatky, Cristina Alesci
Panelists including Soren Reinerson, Justin Slacky, and Marc Antonacio debated the existence of a bond market bubble, with dissenting views centering on whether current leverage levels signal an imminent crisis or are merely an artifact of Federal Reserve stimulus. Speakers further analyzed the structural divergence between easily funded large-cap issuers and a middle-market capital vacuum, driven by regulatory pressures on banks and the rising prominence of Business Development Companies. The discussion concluded by identifying key future risks, such as potential interest rate snapbacks, municipal distress in jurisdictions like Detroit, and the pressure on underfunded pensions to accept higher returns through riskier alternative assets.