Absolute Return Podcast #262 - Syndicated Loans and Private Credit with Palmer Square Capital BDC’s President Matt Bloomfield
Dec 1, 2025
Matt Bloomfield, President of Palmer Square Capital BDC, shares insights on the world of syndicated loans and private credit. He explains the firm's unique focus on corporate debt securities and contrasts it with typical BDCs. Bloomfield discusses the complexities of loan restructurings, highlighting case studies like First Brands and LifeScan's recovery. He also addresses the impact of recent market sentiments and M&A activity on credit strategies, providing a nuanced view of credit market dynamics and their potential outlook.
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Different Fee And Financing Structure
- PSBD targets broadly syndicated loans and liquid positions rather than typical sponsor-backed middle-market direct lending.
- They use lower fees and tailored financing (syndicated loan facility and a BDC-sourced CLO) to match that collateral mix.
Large Secondary Market Is A Big Advantage
- The syndicated loan secondary market (~$1.5T) gives PSBD a deep, liquid pool to deploy into when primary issuance slows.
- That liquidity lets them rotate and maintain invested exposure without relying on new originations.
Headlines Outpace Underlying Fundamentals
- Recent negative headlines exaggerate systemic risk; most BDC portfolios reported healthy Q3 results and typical modest default patterns.
- Media focus and rate-cut expectations drove sentiment and NAV discounting more than widespread fundamental deterioration.