Mudrick Capital CIO on BBB Bonds, Distressed Debt, Oil

The transcript discusses the current state of Triple B rated debts, highlighting their growth from $700 billion in 2008 to nearly $3 trillion today. It explores the potential risks of these debts being downgraded to junk status during a recession. The conversation also covers the implications of a large distressed debt market, even in a mild recession, due to the significant market size. Investment opportunities are identified in over-leveraged companies and small to medium-sized businesses. The oil sector is analyzed, noting low investment levels and disciplined management, suggesting potential for contrarian investments.

What are the implications of a significant portion of Triple B rated debts being downgraded to junk status?

How has the size of the leveraged credit market changed from 2008 to today?

Discuss the impact of low interest rates on company borrowing and risk-taking behavior.

What factors contribute to the opportunities seen in the distressed debt market currently?

What trends are observed in the energy sector regarding investments and management practices?