Credit Exchange with Lisa Lee

Two pools of capital – the franchising of AI digital infrastructure buildout and government spending – are interest rate-insensitive and require a massive quantum of debt, says Gregory Peters, co-chief investment officer at PGIM Credit.
Peters, who in his role oversees $1.2 trillion of assets under management, says the Federal Reserve has to hike interest rates to remain credible. But even with a few more hikes, he doesn’t see the current policy as being restrictive.
“I’m not sure It quells inflation either,” Peters says.
A slowdown of the AI buildout and capex would be a positive for investors and also help to stem inflation, he argues. Whether that will happen, though, is “still very much an open question.” But he notes that this will be the key driver of investment returns here over the next 12-24 months.
“History shines a very poor light on excess capital being deployed in a short period of time,” he says. “It’s a trail of tears.”
In addition, Peters shares his insights on emerging markets, Europe, Asia, and public and private debt markets.

“Interest rate markets are telling you that they really are concerned about inflation, and to a certain degree, concerned about the size of government debt,” says Symon Drake-Brockman, co-founder and managing partner at Pemberton Asset Management, on the latest episode of Credit Exchange with Lisa Lee, taped on 9 September 2026.
The re-engagement of hostilities between US and Iran has set that back in place, he adds, especially since we are moving into winter, when demand for gas and energy will increase. Drake-Brockman says US Treasury yields look quite high, but potential buyers are trying to work out whether the political debate between the White House and the Fed is going to continue. “If it does, then rates could probably go a bit higher,” he predicts.
Europe will see more M&A. The world has fundamentally changed into three economic blocs – the US, China, and Europe, and the first two have been building large companies that operate through their entire economies and internationally, while Europe has lagged. But a new M&A framework will facilitate consolidation and that will ultimately bring Europe closer together, he contends.
Drake-Brockman also discusses private credit and recent regulatory scrutiny. He and Pemberton are in dialogue with the Bank of England, and he shares that “they felt very comfortable that the industry is in a good place.”

“The market clearly is saying that he (US Treasury Secretary Scott Bessent) didn’t threaten a bazooka, he didn’t bring a bazooka, and he hasn’t shown a bazooka,” says Alan Schrager, chief investment officer at Oak Hill Advisors, on the latest episode of Credit Exchange with Lisa Lee.
The US Treasury Department has the capabilities to make an impact on rising sovereign bond yields, but the world hasn’t seen a major or real commitment to buy the long end, Schrager says: “In the absence of a bazooka, it’s very hard to make too much of an impact.”
Schrager, who in his role as CIO helps oversee OHA’s $100bn+ of AUM, also discusses inflation, the health of corporations, the crowding out of capital by artificial intelligence investments, and private credit. While corporations are performing well and there’s no default cycle in near sight, there are idiosyncratic issues.
The upshot is that private credit managers are going to end up owning more companies “than we would have traditionally done”, Schrager predicts, and they have to be prepared for that.

“Here we are again,” reckons Kort Schnabel, co-head of US direct lending at Ares Management, on the surprising return of inflation. Still, the economy is in a good place to be able to manage through these inflationary pressures we’re seeing, Schnabel explains to Lisa Lee on the latest episode of Credit Exchange.
On artificial intelligence and disruption of software companies, Schnabel says we are “not out of the woods”. He adds, however, that there is some good news, in that “it’s not getting disrupted overnight.” Ares – an alternative asset manager with around $680 billion in AUM, and a private credit powerhouse – is open to lending to software firms, but the bar has risen higher, and he explains the factors.
Schnabel is now seeing, for the first time in many years, real dispersion in performance among different managers.
“I think you’re seeing the maturation of these portfolios, and you’re seeing the maturation of the portfolios that were ramped pretty quickly because there was a lot of money.”
And big players that perhaps ramped a bit too quickly and were able to invest with that same pace, may not get bigger: “They might suffer.”

“The markets are recognising the risks around longer-term inflation. I think it’s recognising the ballooning deficits of governments around the world,” says Chris Wright, CEO and president of Crescent Capital Group, on the latest episode of Credit Exchange with Lisa Lee, taped on 19 August 2026.
“What you’re seeing is the repricing of long-term assets based on a recognition of a higher inflationary rate going forward,” says Wright, who helms the global alternative investment firm with over $50 billion of AUM. And the financing of growth in a more uncertain market is getting more expensive, he contends.
Wright also discusses the tie-up of insurance firms and credit asset managers, and why that model has gained in popularity. Crescent is owned by insurance company SunLife. He also chats about corporate credit markets, artificial intelligence and the huge capital spending to support it, and the evolution of private credit funds.