Dillow Says Lack of Liquidity Creates Investment Opportunities

The transcript discusses the current state of the credit market, highlighting issues with high yield issuance and dealer inventory. It explores the impact of liquidity changes on corporate credit and the opportunities arising from complex capital structures. The conversation also compares the performance of floating rate credit to fixed rate credit, noting the outperformance of the former as the Fed normalizes rates. The discussion emphasizes the importance of understanding these dynamics in the context of market changes since the financial crisis.

What factors are contributing to the current state of high yield issuance in the market?

How has dealer inventory changed from 2007 to the present, and what implications does this have for the market?

Discuss the impact of liquidity on corporate credit and high yield markets.

What opportunities are created by complicated capital structures in the current credit market?

What trends have been observed in floating rate credit compared to fixed rate credit this year?