Winning in a Split Market: CLO Strategy with Blackstone

LFI Levered Lines Podcast | Season 3, Episode 13

This week on Levered Lines, host Steve Miller speaks with Bob Post of Blackstone Credit and Insurance about the evolving leveraged loan and CLO markets. They discuss Blackstone’s CLO growth strategy, market bifurcation, private credit dynamics, and the widening gap between stronger and weaker credits affecting pricing and liquidity. They also cover capital flows between BSL and private credit, credit fundamentals, the outlook for defaults and recoveries, the growing use of liability management exercises, and how AI is improving efficiency and influencing investment decisions.

Watch on YouTube:

Speakers:

Steve Miller, Host, Managing Director, CreditSights
Bob Post, Managing Director and the Head of U.S. CLOs, Blackstone Credit and Insurance (BXCI)

Timestamps:

00:00 – Introduction
01:03 – Building a Global CLO Platform
05:06 – Loan Market Bifurcation Trends
08:14 – Issuance Cycles & Volatility Signals
10:02 – Capital Flows & Borrower Choices
12:29 – Resilient Fundamentals & Default Outlook
17:40 – Recovery Pressures & Credit Workouts
21:40 – Technology Shaping Investment Decisions
24:35 – Conclusion & Key Takeaways