00:00Things have compressed, and so the public markets were near all-time tights and below investment-grade private credit.
00:06We've seen spreads compress. We've seen terms become more aggressive.
00:10And so that is obviously an indication of, again, a supply-demand imbalance.
00:16But why we're comfortable, and I think from a macro perspective, we're still quite comfortable,
00:21is if you look at the macro data that's coming out still, you know, you basically have an easing cycle.
00:27So the data suggests that the economy is weak but not too weak.
00:33So there's still a fundamental underpinning of growth expected.
00:38And this U.S. economy has been remarkably resilient, probably more resilient than many of us would have expected with some of the bumps it's had,
00:46and then the growth that we're seeing also in Europe and the Middle East and even in Japan.
00:50So while, yes, credit is tight and it could cause you to really pause on investing in credit,
00:59there are some macro fundamentals that would suggest it's still a good place to put your money.
01:05And the other element of AI, which I think is super interesting from a credit perspective, is what's going on in energy transition.
01:11So all these data centers need a lot of power.
01:16And power, historically, has been an infraply.
01:20And the investments we're seeing in this country and other parts of the world create really compelling investment opportunities for credit investors.
01:28They're highly structured.
01:29They're contracted.
01:31They're contracted with investment-grade counterparties.
01:35The structures are very resilient.
01:37And so, again, it's an AI derivative, an element of AI that I think is very exciting and also safe, safer.
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