Credit in Transition: M&A, CLOs and AI with Octagon

LFI Levered Lines Podcast | Season 3, Episode 17

This week on Levered Lines, host Steve Miller speaks with Gretchen Lam about the outlook for leveraged finance markets and the evolution of Octagon Credit. They discuss trends in M&A activity, direct lending, broadly syndicated loans, and CLO issuance, as well as how market technicals, investor demand, and liability management transactions are shaping credit opportunities and risks.
The conversation also explores the impact of AI on the software sector, credit selection, and investment decision-making, alongside Gretchen’s perspective on leading Octagon through its next phase of growth. This episode offers valuable insights for credit investors looking to better navigate market risks, identify opportunities, and understand the forces driving leveraged finance today.

Watch on YouTube:

Speakers:

Steve Miller, Host, Managing Director, CreditSights
Gretchen Lam, CEO, Octagon Credit Investors

Timestamps:

00:00 – Introduction
01:07 – Octagon Credit Growth & Market Outlook
05:54 – Direct Lending and Private Credit Trends
09:29 – CLO Market and Investor Demand
13:03 – Multi Asset Credit Strategies
16:39 – AI Impact on Software and Credit Markets
20:20 – Default Rates and Credit Risk Indicators
24:15 – Liability Management Transactions
27:00 – AI in Investment Management
30:11 – CEO Leadership and Long Term Strategy
34:15 – Conclusion & Key Takeaways