CDO Whisperer Brett Jefferson on Securitization Markets and TruPS CDO Relics

Forward Guidance

This interview with Brett Jefferson discusses trust preferred CDOs, why they can provide such great opportunities, and how Brett’s fund capitalizes on this niche market. Brett and Jack also discuss the private credit market, the risks and benefits of securitization, the performance of the collateralized loan market, and much more. Recorded on September 10, 2024.

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Timestamps:

(00:00) Introduction

(00:59) Trust Preferred CDOs

(08:44) Starting Hildene Capital Management

(10:44) Buying Trust Preferred CDOs

(13:22) Deferred Payments

(20:13) Trust Preferreds Regulated Out

(23:15) Philadelphia Fed Paper

(27:38) Taking Advantage Of Inefficient Markets

(34:33) Private Credit

(37:55) Hildene's Market Niche

(44:11) The Structured Credit Market

(51:44) Structured Security Correlations

(55:20) Credit Market Risks

(01:00:00) The Realities Of Private Credit

(01:08:27) TruPS CDOs

(01:11:03) Private Credit CLO Market

(01:14:48) Risks & Rewards

(01:18:58) Collateralized Loan Market Performance

(01:25:28) Closing

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Disclaimer: Nothing discussed on Forward Guidance should be considered as investment advice. Please always do your own research & speak to a financial advisor before thinking about, thinking about putting your money into these crazy markets.