00:00Let's get more insight now with Kat Hildago, Bloomberg's leveraged finance and distressed
00:03debt reporter in London. Kat, great to see you. And these were bond funds that were also
00:08upsized, sales, I should say, that were upsized. What does that tell us about both the health
00:13and the demand around these companies? Yeah, thanks for having me on. I'd say
00:19it provides good insight into the health of private credit. We can see that it's still
00:24soft, but it's definitely doing a lot better than it has in 2026 in general. So investors
00:31are definitely interested in the area. But the fact that they're going into investment
00:35grade makes us think that they are perhaps a little bit concerned about the underlying
00:39portfolios, but they just prefer to get exposure kind of further up the capital stack, if that
00:44makes sense. How has bond issuance been from these from the BDCs? Have they been slowing
00:54down? Does this represent a pickup or business as usual? Yeah, there was a big summer lull amid
01:01all of a kind of disruption with investors kind of pulling away from BDCs and requesting money
01:09back. It seems that appetite is slightly improving. Even though some of the earnings calls haven't
01:17been great, they have been a lot better. Nonaccruals are ticking up and redemption requests are still
01:23there. But investors are seeing through a lot of the noise around private credit. And I think
01:28they kind of see that the future long term is still kind of bright for private credit. So yeah,
01:35one might be hopeful. There's definitely reasons to be hopeful. On the redemption front, Kat, you
01:39mentioned that they're slowing down. But how extreme are they still? Because things like Blue Owl's
01:43technology fund, there were some pretty elevated levels. Yeah, definitely. And a lot of the firms are
01:49still capping. But I think there's a lot of kind of underlying base in the market that really still
01:56likes private credit. So I guess they're kind of giving the industry a little bit of stability,
02:02which allows private credit funds to actually return a lot of the redemptions if they need to.
02:08So you're not seeing kind of widespread, I guess, turning away from the industry. The banks are still
02:13there supporting their leverage facilities. They can still kind of sell assets, but not in fire
02:18sales. There's not kind of like crazy troubles that are, I guess, submerging the industry.
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