00:00This Castle Lake potential bid for EasyJet with Bloomberg senior reporter Silas Brown. I mean Silas one of my big
00:05questions is isn't this a credit fund.
00:08What are they doing trying to make a leverage buyout of EasyJet. Yeah I would say that I when I
00:13read the highly opportunistic thing I was on the math school of school of philosophy which was like I was
00:18actually every every takeover is opportunistic.
00:21But anyway yeah yeah no look they specialize in private credit but they also specialize in kind of all manner
00:27of complicated aviation investing.
00:29And so I think they are to a certain extent an outlier normally in terms of takeovers but I think
00:36they sit in the sweet spot of aviation specialism and then also the UK market which is kind of considered
00:41undervalued versus its peers.
00:44Hey I want to ask a question I've been asking across asset classes Silas.
00:47It seems that there's a flood of cash going everywhere certainly into hedge funds right the big multi strap firms
00:53have more capital than they have ability to deploy it in fixed income.
00:59We see corporate spreads at record tights I mean at least over the last 20 years and inequities obviously just
01:06cash pouring into this market driving us up to all time high after all time high.
01:10Do you continue to see that kind of cash flow into private credit as well even after the sort of
01:17cockroaches scare of last year?
01:20Yeah I think I think you're right.
01:21I mean one of the things that I found most eerie over the past three months is I mean look
01:25what look what's going on geopolitically and you know all of these things should have the inflationary pressures that are
01:32becoming more and more visceral.
01:33You know all of these things should have consequences on margins and yet there's a kind of eerie tightness going
01:40on in private credit still and I think that is best explained by just the sheer amount of cash that
01:45is able to be deployed.
01:48I mean there's a lot of dry powder still sitting on in private credit funds and so you haven't really
01:53seen much of an impact on price and I think that you know that's quite similar to a kind of
01:59variety of fixed income products that we track.
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