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At Schwab IMPACT, Matt talks about how Oaktree Capital Management is currently identifying compelling opportunities in private credit, particularly due to the recent rise in base rates. In the current higher-rate environment, yields in private credit, specifically for first lien paper, are ranging from 12% to 13%, offering attractive investment prospects. Despite a temporary slowdown in sponsor LBO activity attributed to market volatility, Oaktree Capital Management anticipates increased activity in the coming quarters and years, emphasizing the growing significance of private credit in a financial landscape where banks are progressively retreating from the space.
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