Monetary Matters with Jack Farley Private Credit “Doom” Narrative On Shaky Foundation? | Michael Haynes On Why Retail Outflows Are Real But Credit Foundations Are Solid
Apr 8, 2026
Michael Haynes, Head of Private Credit at Beach Point Capital, a specialist in direct lending and asset-backed finance. He unpacks private credit product mix and where Beach Point sees the best risk-reward. He highlights public market dislocations as sourcing opportunities and explains liquidity limits, club deals, and how origination gives an edge.
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ABS Benefits From Direct Origination And Higher Rates
- Asset-backed strategies (ABS) span consumer credit, non‑agency mortgages, aviation, and esoteric loans; originators that manufacture assets gain yield and control.
- Haynes calls non‑agency mortgage origination a 7–9/10 opportunity amid higher for longer rates.
Limited Secondary Liquidity From Confidentiality Constraints
- Private markets' liquidity is evolving toward convergence with public markets, but today true secondary trading is limited by confidentiality and sparse data rooms.
- Haynes sees bid lists and isolated trades now but says plumbing and borrower consent to share info are needed for sustained liquidity.
Improve Borrower Transparency To Create A Secondary Market
- To enable a more liquid private credit market, borrowers must accept sharing diligence with prospective buyers; increased transparency lowers cost of capital.
- Haynes says borrowers' reluctance to share financials currently blocks broader trading.