Lisa Abramowicz
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- 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.