00:00Aren't there opportunities here after, you know, Boaz was started offering 60 or 70 cents for some assets?
00:07We heard Robin Dumar yesterday. He was pretty excited about putting cash to work here.
00:12Said a lot of stuff looks very interesting lately. Do you see the same opportunities?
00:18Well, a lot of the loans that are out for sale right now are pretty bad loans.
00:22So, you know, we've we've seen some blocks of those and they're not clearing at a price where yet where
00:29we would be interested in buying them.
00:32You know, this is becoming more of a stress distress type of opportunity. And in those areas, you really need
00:37high teens type of returns to make them make sense.
00:41But what's interesting, I'd say, is that it has refocused the market on other opportunities and a credit tightening somewhere
00:49will lead to a credit tightening everywhere.
00:51And, you know, what we're seeing is emerging opportunities in what's called asset based finance. So this would be residential
00:57mortgages.
00:58This would be consumer lending. This would be aviation finance, things like that, where that's a much more resilient profile.
01:06There's been much less leverage.
01:07In fact, there's been deleveraging in those spaces for the last several years. But when the system as a whole
01:14has a credit tightening,
01:15that creates a higher cost of borrowing for the system as a whole and creates more interesting opportunities in those
01:22higher quality opportunities that are kind of babies getting thrown out with the bathwater.
01:27So that's really where we're looking for the most opportunities rather than pivoting into distressed sectors and trying to guess
01:33which software company is going to be the survivor.
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