Strategic Insights on Private Credit Investing with Alona Gornick | Tao of Chao 12

Welcome to Tao of Chao! Join us for this episode where Philip Chao sits down with Alona Gornick, managing director, senior investment strategist, and co-head of the Chicago office for Churchill Asset Management. Tune in as they discuss private credit and hear Alona's insights on this powerful complement to traditional fixed-income strategies. Don't miss out on this valuable conversation about private credit!

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Philip Chao
Website: https://philipchao.us
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DISCLOSURE: Views expressed in the Tao of Chao podcasts are individual opinions and they do not represent the employers of each guest or the firm with which each guest is associated. Our podcasts are for educational and informational purposes only and should not be deemed or viewed as investment advice or recommendations. Please consult your personal financial advisor, investment expert, or investment fiduciary before taking any actions about your plan and investments.

Chapters

• 0:00 Show Open
• 0:45 Introducing Alona Gornick
• 2:13 How did private credit market and "shadow banking" begin
• 5:32 Post GFC Era and rise of private credit
• 8:19 Evaluating midsize banks and recent bank collapses
• 12:00 Lender-friendly opportunities that have been created
• 14:01 The limitations of midsize banks and traditional banking
• 18:20 Defining private credit
• 20:51 Private credit is non-bank lending
• 22:13 Segmentation of private credit market
• 24:58 How do private credit deals originate
• 29:07 How private equity firms build relationships
• 30:21 The difficulties of finding deals
• 32:06 Mapping where capital is coming from
• 36:47 Defining private bank loan terms
• 41:04 Defining secure lending and senior secured
• 42:42 Discussion of risk: "All investing has risks"
• 45:39 Underwriting of loans / "kicking the tires"
• 47:31 Impact of current interest rate environment / stress testing
• 55:24 Essential stress testing for recession scenarios
• 1:00:02 Stress test case study: COVID event
• 1:02:03 Assessing and selecting a private bank manager
• 1:06:29 Review and Wrap up
• 1:07:42 Show close and disclosure