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17 results for “financial risk”
I think the bigger risk here, again, is not fallout. It's that this really self perpetuating demand for debt leads to basically a degradation of returns over time, where there's a great definition of financialization where it's the demand for debt se
1:01:29 / 1:02:33
from transcript1:01:29 – 1:02:33
...the great financial crisis has, in fairness, made risk far, far more diffuse than it was prior, where it was housed in a very somewhat concentrated banking system and now it's spread across these many, many asset managers and these many, many structu
1:00:45 / 1:01:51
from transcript1:00:45 – 1:01:51
...financial crisis has, in fairness, made risk far, far more diffuse than it was prior, where it was housed in a very somewhat concentrated banking system, and now it's spread across these many, many asset managers in these many, many structures with m
59:11 / 1:00:22
from transcript59:11 – 1:00:22
...financial system, I think a lot of risk exists. We just can't see it. We don't know how many times a specific asset is getting rehypothecated or how it's getting tranched up or a lot of the time, like, what assets even represent or what risk there is
28:29 / 29:32
from transcript28:29 – 29:32
...the great financial crisis has, in fairness, made risk far, far more diffuse than it was prior, where it was housed in a very somewhat concentrated banking system, and now it's spread across these many, many asset managers in these many, many structu
59:54 / 1:01:11
from transcript59:54 – 1:01:11
...risk systems. I think some have what optically seem like good risk systems that are very backward looking. You have lots of people using the same risk systems. I think it can lull you into a false sense of security that can make you feel like, hey, I
30:47 / 31:49
from transcript30:47 – 31:49
...take risk exposure in a loan. The second from a portfolio approach is we want to create some sort of minimum return. Again, not every deal has it, but some sort of minimum returns on a blended basis across our portfolio. We have some sort of downside
30:02 / 31:05
from transcript30:02 – 31:05
...risks that the debtor and the creditor will have a conflict. You can imagine that with China. You can imagine that with Europe even. And, you know, Europeans could wonder whether they will get sanctioned. In other words, the debt service payments mig
5:59 / 7:03
from transcript5:59 – 7:03
...risk is the capital allocation. Maybe you choose the wrong market, and I talked about how maybe you were expecting that market to be one to four competitors where you're gonna have those higher margins, but it ends up being a six plus market. Or mayb
48:00 / 49:02
from transcript48:00 – 49:02
...risk reward, particularly when those loans themselves are complex, so maybe there's some hair on them? In investing in credit, you have to remember the three c's, capacity, which is the ability to pay. There is collateral, which is the guarantee, the
35:58 / 37:05
from transcript35:58 – 37:05
The bigger risks revolve around this idea of management of expectations, ensuring that why investors are embracing this match up with what can be delivered. It's awareness, education, and expectations management where it has the greatest surface area
50:59 / 52:00
from transcript50:59 – 52:00
Meaning like I just don't think I wanna ride spreads tighter. I don't think I wanna ride like a surfboard of yield improvement that's gonna really help us. I think it's gonna be, you know, we see it today. You are seeing some of the credit quality de
22:37 / 23:37
from transcript22:37 – 23:37
...risk. I think most of the risks though, candidly, is idiosyncratic execution risk. There are a lot of benefits from evaluation and potential for efficiency perspective
46:35 / 47:35
from transcript46:35 – 47:35
that don't generate any cash in the near term, but offer a nice kind of mid teens return. We think that Wall Street is getting a little short on places to stick the stumps. They're coming up in special situations funds. They're coming up in interval
1:00:43 / 1:01:45
from transcript1:00:43 – 1:01:45
...that leverage and or illiquidity can cause. And just think a lot of strategies that look good in the rearview mirror, look very risk controlled, often have a lot of leverage and we think are at real risk of having a major issue even though they haven
1:10:30 / 1:11:32
from transcript1:10:30 – 1:11:32
...lot less risk. A lot less to fall, and you have some upside. I would say at 23, there's not a lot of upside and there's a long way to fall. And that's true with credit spreads. So and we and we look at we stress test everything. We do, like, a 100 st
50:16 / 51:23
from transcript50:16 – 51:23
...markets decline by 20%, interest rates go up by 10%, unemployment skyrock, housing prices collapse, blah, blah, blah. They've been subjected to stress tests over the last couple of years, and those stress tests show that basically their losses would
49:28 / 50:40
from transcript49:28 – 50:40
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