Nicole Downer discusses state of global credit markets
Nicole Downer, Managing Partner and Head of Investor Relations at MV Credit, joined Dwight Scott, a Senior Managing Director of Blackstone and President of GSO Capital Partners, on the “State of Global Credit Markets” panel at Bloomberg’s inaugural ‘Invest Summit’ in London.
Discussing the current credit market cycle, Nicole said that “the European credit cycle is perhaps two to three years behind US markets as a result of European policymakers being slower to use quantitative easing, as well as the mini-recession that followed the European sovereign debt crisis”.
Nicole also highlighted the importance of managing risk in an uncertain market environment: “At MV Credit we don’t attempt to time cycles, we manage them by investing in defensive companies where we like the credit and can identify stable characteristics such as recurring revenues.”
Finally, she noted that MV Credit remained disciplined in a market currently awash with dry powder: “We raise appropriately sized funds to effectively deploy capital in a way that achieves returns for our investors and reflects the opportunity we see in the market. Despite the fact we are seeing a high volume of deals at the moment, we are prepared to, and have, walked away from more deals in the past 12 months than in previous years. We know our space well and have operated successfully in it for 18 years”.