Next Recession Will Have A Softer Landing: Paul Hastings' Brady

The video explores the dynamics of debt trading at distressed levels, questioning whether it indicates economic stress or market health. Bill Brady discusses the balance between market deals and restructurings, noting a shift towards competitive deals. The conversation highlights sector-based problems, particularly in energy and retail, and the role of leverage. Future economic cycles are considered, with a focus on the potential for a softer landing due to available distressed funds. The video concludes by comparing the performance of private debt and equity, suggesting private debt may be better positioned in future market conditions.

What is the current balance between deals that are falling apart and those coming to market?

• 70% front end deals and 30% restructurings

• 50% front end deals and 50% restructurings

• 30% front end deals and 70% restructurings

• 95% front end deals and 5% restructurings

Which industries are primarily affected by restructuring according to the discussion?

• Technology and Healthcare

• Automotive and Agriculture

• Energy and Retail

• Finance and Real Estate

What is the expected impact of high leverage on companies?

• It results in more stable markets

• It reduces the need for restructuring

• It leads to increased profitability

• It creates winners and losers among deals

What is the anticipated outcome for borrowers in the next recession?

• No impact on borrowers

• Increased interest rates without any support

• A softer landing due to distressed debt funds

• A harder landing due to lack of funds

How are private debt funds expected to perform compared to private equity funds in the future?

• They will outperform significantly

• They will underperform significantly

• They will perform equally

• They will cease to exist