Please join our distinguished panel as we explore the current state of the credit markets, and the potential risks associated with a downturn. Topics will include:
- IG Fallen Angel Risks: A decade of low borrowing costs has fueled transactions and financial policy shifts that have expanded the 'BBB' rating category. Is a wave of BBB category rating downgrades possible? What would it mean for market liquidity and HY investors in a scenario of forced-selling?
- High Yield and Leveraged Loans: Will higher leverage and weaker loan terms lead to increased defaults and lower recoveries in the next downturn?
- Underwriting Standards and Credit Terms: Given excess demand relative to supply post the financial crisis, how far out has the line on credit quality moved? How will terms/conditions protect (or not) when we pass the inflection point in the credit cycle?
- CLOs: The CLO "bid" has provided new issuance and refinancing fuel to the leverage loan market. What scenarios can disrupt this CLO bid? What sectors are overly represented in CLO portfolios? How will CLOmanagers and CLO investors behave during an economic downturn with underlying leverage loan downgrades? Will CLO managers seek liquidity (by selling) if a large number of loans are downgraded? How much capital is available to buy downgraded loans? What are some of the new structures emerging to take advantage of the expected downturn?
- Proliferation of Direct Lending: What have been the leverage trends of borrowers in direct lending? How does the form or vehicle in which the capital has been raised impact what we should expect for loss severity? What has been the impact of allowing BDCs to lever more fully? Are closed end funds patient capital, and will they restructure loans rather than force defaults? Has too much reliance been placed on intangible assets and adjusted earnings?
Michael Altberg, Senior Director, S&P Global Ratings
Michael Altberg, Senior Director, manages S&P Global Rating's U.S. Telecom, Cable & Leisure teams, with coverage of over $1 trillion in debt and responsibilities for portfolio ratings performance, analytics and client management.
Michael is co-chair of S&P's North America Analytical Oversight Council, a committee tasked with monitoring ratings performance and analytical consistency across sectors. He has led S&P's research and external outreach on topics such as U.S. Tax Reform and 'BBB' transition risk, and has co-authored some of S&P's main criteria for rating nonfinancial corporate issuers.
He holds a B.S. from the University of Virginia and an M.B.A. from Yale University.
Nat Barker, Managing Director and Co-Head of the Investment Grade Credit Group, Barings
Nat Barker is a member of the Barings Multi-Strategy Fixed Income Group, Co-Head of the Investment Grade Credit Group, and leads the Multi-Strategy Fixed Income Group's Insurance Practice. Nat is responsible for the portfolio management of the firm's multi-asset insurance client mandates, as well as the investment grade corporate bond strategies. Previously, Nat served as the Head of Investment Grade Corporate Credit Research and was a credit analyst in the Global Fixed Income platform. Prior to joining the firm in 2007, Nat was a distressed company consultant with experience representing creditors and debtors in both formal insolvencies and out-of-court restructurings at Kroll Talbot Hughes. Prior to that, he worked in the corporate restructuring groups of KPMG and Arthur Andersen.
Effective January 1, 2020, Nat will join Barings's parent company, MassMutual, as Head of Global Fixed Income reporting to the Chief Investment Officer. Nat will focus on managing MassMutual's credit risk exposures and continue to work closely with Barings in developing and carrying out MassMutual's investment program.
Nat holds a B.A. from Tufts University, a General Course Certificate from the London School of Economics, and an M.B.A. from the University of Utah.
Sharon Greenberg, Managing Director, Head of RQA Global Private Credit, BlackRock
Sharon Greenberg, Managing Director, is the Head of RQA Global Private Credit within RQA Alternatives. Ms. Greenberg is also responsible for leading strategic risk management initiatives across the Alternatives platform.
Prior to her current role, Ms. Greenberg led risk management of securitized assets and opportunistic credit portfolios within Global Fixed Income.
Prior to joining BlackRock in 2009, Ms. Greenberg was a Director at Barclays Capital where she led research of non-agency mortgage-backed securities. Her work focused on security valuations and development of restructuring strategies for distressed bonds. Previously, she was a Vice President at Credit Suisse performing ABS Research. Her primary responsibilities included evaluating mortgage originator and servicer risks and assessing the impact of tightening credit, changing servicing practices and growing government involvement on non-agency security valuation. From 1997 to 2006, Ms. Greenberg was a Senior Director at Fitch Ratings where she developed criteria for and rated all types of residential MBS and municipal mortgage revenue bonds. Ms. Greenberg began her career at the US Department of Housing and Urban Development where she was an asset manager.
Ms. Greenberg earned a BA degree, magna cum laude, in economics from Siena College and a Master of Public Administration degree from Syracuse University Maxwell School.
Steven Miller, Team Leader, LevFin Intelligence Group, Fitch Solutions
Steven Miller is an executive at Fitch Solutions. He joined Fitch in July 2018 when it acquired Fulcrum Financial Data LLC, at which he was CEO since April 2016. Steve is an experienced entrepreneur, board member and hands-on manager who has played a vital role in several successful ventures in the financial information and technology arena, including: Co-founder and CEO of Portfolio Management Data (predecessor to LCD), acquired by Standard & Poor's in 2000; Founding investor in, and board chair of, Black Mountain Systems, acquired by Stone Point Capital in 2015; Founding investor in, and advisor to, LoanX, acquired by IHS Markitin2003; Team leader of Gold Sheets group at Loan Pricing Corp., acquired by Reuters Corp. in 1993.
David Tesher, Managing Director and Head of Credit Research for North America, S&P Global Ratings
David Tesher is a Managing Director and the Head of Credit Research for North America at S&P Global Ratings. The Credit Research team facilitates the development and delivery of research covering multiple asset classes. In addition, David also is the Chairperson for the North American Credit Conditions Committee. The Credit Conditions Committee is an S&P Global Ratings’ regional forum monitoring global systemic risks which could potentially impact credit.David also serves on the Board of Governors of the N.Y. Chapter of the Risk Management Association (RMA).
David initially joined S&P Global Ratings U.S. Structured Finance Group in 1995. Shortly thereafter, David formed S&P Global Ratings Structured Credit Group, and was responsible for managing the firm’s U.S. Cash Flow Structured Credit business prior to transitioning to the Corporate Ratings Group in 2010.
Before joining S&P Global Ratings in 1995, David was a commercial lender and senior credit officer with National Westminister Bank USA, responsible for corporate lending and the monitoring of credit policy for the firm's corporate loan portfolio.
David holds a B.A. in business and economics from Lafayette College.
Thank you to our sponsor CEIS Review for their generous support of this program.