In recent years, Oaktree has witnessed an unprecedented rise in liability management exercises (LMEs), which have come to outnumber traditional in-court restructurings. In Oaktree Credit Quarterly 4Q2024, Armen Panossian (Co-CEO and Head of Performing Credit) and Danielle Poli, CAIA (Assistant Portfolio Manager, Global Credit) explore the origin of this recent surge, the various methods of executing LMEs, and the potential risks and opportunities for both performing and opportunistic credit investors, emphasizing the need for size, experience, and skill to navigate the LME wave. Plus, we’ve included an excerpt from Howard Marks’s latest memo.

Listen to the audio version of The LME Wave via the audio player at the top of the written piece on Oaktree’s website, or read more below.