Credit Titans Warn of Shakeout on Deals That ‘Don’t Make Sense’

Beneath the surface of buoyant credit markets, a shakeout is building for leveraged deals made years ago, as well as for direct-lending funds that are grappling with an extended period of investor withdrawals.

Time and again, that was a theme hit on by industry heavyweights on Wednesday at the Bloomberg Global Credit Forum in New York.

Holly Kim, co-founder of Glendon Capital Management, said there’s a “day of reckoning” that has to come for cable and broadband providers with some $230 billion of debt that have seen their valuations plummet. Meanwhile, private credit firms enjoyed virtually non-stop growth in ...