00:00What state of the credit cycle do you think that we're in right now?
00:04I think it's important to put the current market in context because credit, private credit, and direct lending almost get
00:13used synonymously in today's environment.
00:15And we generally are of the view that credit markets are in good shape.
00:20Bank balance sheets are terrific, corporate balance sheets are strong, capital markets are liquid.
00:25Then you move to private credit, and we would suggest that most components of the private credit market are also
00:32in good shape.
00:33Real asset lending, asset-backed lending seems robust, demand is outweighing supply, credit spreads are strong, covenant quality stays high.
00:42Then you get to direct lending, and there are undoubtedly some concerns about direct lending today.
00:47A lot of capital fluid came in very quickly, spreads tightened, maybe some concerns about corporate credit quality.
00:55But it's important to recognize that is only a very small sub-segment of broader credit markets.
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