Alan Waxman breaks down the post-financial crisis expansion across private capital segments.
Opinion
The 1999 Repeal of Glass-Steagall Contributed to the 2008 Financial Crisis
“I think There was definitely some attribution to it. I don't think that was clearly not the only reason, but my view it's some combination, but ultimately it had to do with the system and the set of incentives.”
Insight
Asset-Liability Mismatches, Not Bad Credit, Drive Financial Crises
“All crises is generally a cause from not credit issues or others. There's, they might start in other issues, but it's mismatched assets and liability.”
Insight
Industrialized Capital Fundraising Forces Asset Managers Into Factory-Model Deployment
“The two parts to it are, first part is the industrialization of the fundraising process, right?
It's a liability gathering.
So literally raising as much capital as you possibly can, literally as fast as you can.
So that's sort of the industrialization of the l…”
Insight
Credit Investors Must Reject Collateral Stripping for a Mere 10% Return
“If you have capped upside and you're earning a 10% return and all the collateral that your 10% is based on can literally be basically taken out of your collateral package overnight. Or for that 10% return, you can be levered up because let's say there's an AI …”
Insight
Waxman: 'Semi-Liquid' Assets Do Not Exist; Investments Are Liquid or Illiquid
“There's no semi-liquid, ok? There's no such thing as semi-liquid. Like, anyone that's an investor that's been through a bunch of cycles, there's liquid, and then there's illiquid”
Opinion
Private BDC Liquidity Bottlenecks Do Not Pose a Systemic Financial Risk
“I don't think this is a systemic issue yet for two reasons. One, we're only five years into this, so it's early. And the second, second thing, at least for now, there's a pretty strong economic backdrop. There's definitely risk to it. So I don't think this is …”