Uncertainty in the BSL Market: What Now?

LFI Levered Lines Podcast | Season 3, Episode 8

An In-depth discussion with Carlyle Partner, Lauren Basmadjian
This episode examines leveraged finance in 2026, with a focus on CLO management, market volatility, software-sector pressures, and credit fundamentals. Host Steve Miller speaks with Lauren Basmadjian about overseeing $50B in liquid credit across U.S. and European CLOs, the dynamic between private credit and syndicated loans, and an M&A driven supply pipeline. They discuss default trends, liability management exercises, AI’s impact on software portfolios and investment workflows, and key differences between U.S. and European credit markets. Lauren also shares career insights for the AI era and highlights opportunities created by volatility that has pushed 88% of loans below par offering timely takeaways for credit investors amid geopolitical risk, tech disruption, and shifting capital flows.

Watch on YouTube:

Speakers:

Steve Miller, Host, Managing Director, CreditSights:
Steve is an expert in creating news and data tools for leveraged finance and credit market participants.

Lauren Basmadjian, Partner and Global Head of Liquid Credit, Carlyle Group:
Lauren is a partner at Carlyle Group leading the firm’s liquid credit business with about $50 billion AUM and is a longtime CLO manager across US and European businesses.

Timestamps:

00:00 – Introduction
01:07 – Carlyle Business and Growth Outlook
04:01 – Private Credit and CLO Markets
06:53 – European vs US Market Dynamics
09:20 – Software Sector and AI Disruption
13:47 – Default Rates and LME Strategy
17:26 – Career Advice and Community Impact
19:54 – Conclusion