8:30am – 9:00am
Overview – Tuesday – February 25
9:00am – 9:15am
9:15am – 9:45am
In terms of size, duration, quality and the lack of liquidity, the current market situation is being compared to the mid-2000s, just before the global financial crisis. The current build-up in corporate leverage, the decline in credit quality and lower underwriting standards are all consistent with late-cycle credit behaviour last seen in 2005 and 2006. With such financial market vulnerability, lacklustre growth and low inflation, what do investors need to consider as they examine the opportunity set?
9:45am – 10:15am
This session will cover the evolution of the US and European CLO markets since the financial crisis. It will provide an overview of the sector, discuss the structural changes in CLO 2.0 as well as the lessons learnt, and the development of the CLO marketplace. The session will contrast the idiosyncratic opportunities, the global collateral landscape and the respective risk-return trade-off during a late-stage credit cycle.
10:15am – 10:45am
10:45am – 11:15am
Beyond the Chinese economy there are a number of other Asian countries that provide investors with credit opportunities across both emerging and developed Asian economies. This session considers the challenges associated with private credit approaches in each economy and how to navigate the region.
11:15am – 11:45am
As banks withdraw from commodity trade finance this provides funds with a platform to consider the opportunity set. This session considers the options across the supply chain, the ESG connotations of trade finance and the risks associated with defaults.
11:45am – 12:15pm
After strong equity gains from real asset exposures over the past decade, asset owners are considering transferring some of their equity allocations to real estate and infrastructure debt securities for greater protection and lower volatility. How should investors assess risk/return trade-off of international brownfield, development, and greenfield opportunities?
12:15pm – 1:45pm
1:45pm – 2:30pm
Returns for the private credit asset class have been mixed over the past year as high asset prices, supported by a very competitive environment, are now being influenced by a narrative of a tipping point or a reflection of lower return expectations in the coming years. In this session, we explore the fixed income alternatives of asset-backed related financing and cash flow driven collateral and the expectations for the various options given the market dynamics today. While the private credit market has been generally sanguine on high yield the preponderance of covenant-lite debts raises the question as to what would happen when defaults do eventually hit? What are expectations for recoveries across the various and distressed investment returns? What are the key considerations in negotiating with borrowers to ensure the best investment outcomes?
2:30pm – 3:15pm
With a significant range of private credit managers available for the fixed income or alternative asset buckets, what are the questions that consultants are fielding from the asset owners? Does private credit offer the diversification and reduced portfolio volatility that investors should expect? The session examines the issues that investors need to consider as they determine their allocation to credit, illiquidity challenges and how to factor in leakage and fees.
3:15pm – 4:00pm
The start of the 2020s will begin with the lowest interest rates in recent history. As the world returns to a low rate regime - after a brief and explosive attempt at renormalising monetary policy - asset owners are being forced to revisit their investment philosophy to include more unlisted alternatives such as private credit as a source of return. In this session, we hear from asset owners on why they are allocated to private credit and what their expectations are for the sub-asset class?
4:00pm – 4:30pm