Marblegate Asset Management

Marblegate Managing Partner and Chief Investment Officer Andrew Milgram and RapidRatings Executive Chairman James H. Gellert discuss their analysis of RapidRatings private company financial data, what it means for investment opportunities in middle market credit and highlight the divergent fortunes of middle market companies and their larger public peers in today’s K-shaped economy. Find the full video here: https://lnkd.in/eTmzHFG6

The Financial Times analyzes the evolving role of private credit and the state of corporate restructurings, including insight from our Managing Partner and Chief Investment Officer, Andrew Milgram: “No matter how good a document or how good a lender you are, companies make mistakes?.?.?.?but you live with the consequences.” Even distressed debt veterans are surprised by the increasing influence being wielded by private credit lenders, potentially signaling a new trend in private credit. Find the FT’s full coverage here:?https://lnkd.in/e78x7-t2

Today Ellen Rose Schneider at Bloomberg quoted our Managing Partner and Chief Investment Officer Andrew Milgram in a story about private creditors’ increasing interest in developing a secondary market for direct loans to deal with an increase in distressed borrowers as they continue to grapple with higher interest rates: “I’ve gotten a number of calls from private credit guys who are looking to dispose of deeply troubled loans, looking for us to take their position,” Milgram said. You can view the full article here: https://lnkd.in/euDmwaXm

Bloomberg’s Ellen Schneider spoke with Marblegate Managing Partner Andrew Milgram and RapidRatings Executive Chairman James H. Gellert about their analysis of new private financial data that we believe confirms the collapse in margins, surging leverage, and deteriorating solvency of middle market companies due to the continued impacts of high interest rates and inflation. We believe this trend threatens to undermine a large cross-section of the?economy and points to unique investment opportunities in middle market credit for those who can reorganize capital structures and engineer turnarounds. “Where we are on interest coverage ratios, the ability to service debt and to generate cash — it’s astonishing,” said Andrew Milgram. “These companies simply cannot pay their bills.” ? Check out the full article:?https://lnkd.in/dw4aJg5C

The discussion around private credit is often dominated by the apparent appeal of middle market direct lending. The lack of transparency may be obscuring risks that are all too common among smaller highly leveraged corporates. ? Marblegate’s Managing Partner & Chief Investment Officer, Andrew Milgram discussed the future of private credit and the myriad challenges facing borrowers and lenders on the “Private Markets: Keeping Up with Moving Targets” panel at the annual Milken Institute Global Conference with executives from Texas Municipal Retirement System (TMRS), Hunter Point Capital LP, Blue Owl Capital, Manulife and Jefferies. As direct lending tries to weather these challenges, the continued growth of private credit as a whole may rely on alternative strategies. ? Watch his full remarks from the panel here: https://lnkd.in/djEK3KRv

“Historically, when there is a standoff and chasm between sellers and buyers, the seller generally has to cross the line. With an uncertain political environment, double digit direct lending rates, and leading indicators for defaults showing some momentum, more caution is warranted.” Always love the courageous realism from Andrew Miligram of Marblegate Asset Management. Great moderated panel on private markets from Yup S. Kim at Milken Institute

Looking forward to seeing Marblegate's CIO and Managing Partner Andrew Milgram discuss the trends shaping private markets. #MIGLOBAL

Join us at the Milken Institute 2024 Global Conference where our Managing Partner & Chief Investment Officer Andrew Milgram will join executives from the Texas Municipal Retirement System, Hunter Point Capital, Blue Owl Capital, Manulife and Jefferies for a panel exploring the forces shaping the growth of private markets and what opportunities exist for investors beyond traditional credit during “Private Markets: Keeping Up with Moving Targets.”?For more information click on the link below. #MIGlobal? ? https://lnkd.in/djEK3KRv

Marblegate Asset Management expects U.S. banks to dispose of a large share of the troubled assets that are held on balance sheets based on its analysis of the 2023 Shared National Credit (SNC) Program,?an interagency program of the Federal Reserve, OCC and FDIC designed to consistently and efficiently analyze the risks in large, syndicated loans shared by banks and non-bank lenders. ? The 2023 SNC Program showed over half a trillion in troubled assets, including $395 billion in impaired loans such as loans in default or likely to default – the highest notional amount since the inception of the program.?These asset disposals can create substantial investment opportunities for turnaround investors who can bring to bear financial and operational restructuring experience. ? Read the full Marblegate analysis at:?https://lnkd.in/evyBzWKm

“Rebound in credit markets hides growing corporate strain,” writes Kate Marino for Axios, who spoke with Marblegate Managing Partner and Chief Investment Officer Andrew Milgram about the recent multi-agency Shared National Credit Program Report that showed over $570 billion in troubled assets among U.S. banks participating in leveraged lending. While there has been a recent surge in placements of new loan and bond deals, Milgram notes that as troubled loans, designated as “special mention” and “classified”, rose over 38% year-over-year to $572 billion, “disconnected prices run the risk of sending distorted signals about the economy.” Read the full Axios article here: https://lnkd.in/eept6Fn8