Bloomberg Businessweek Trump Threatens 'All Hell' as 8pm Deadline Looms
Apr 7, 2026
Sastry Durvasula, TIAA tech chief who builds secure AI and digital tools. Michael Gross, private credit veteran focused on asset‑based lending and market structure. Jim Caron, Morgan Stanley CIO who navigates markets amid shocks. They discuss looming Iran threats and market moves, private credit growth and deal quality, and how firms deploy AI internally for fraud, service and industry models.
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Tilt Portfolios To Defensive Quality Sectors
- Jim Caron recommends positioning portfolios toward dividend quality and defensive sectors like healthcare and defense during the geopolitical shock.
- He highlights healthcare, managed care, AI-linked tech, and defense as preferred overweight areas.
Private Credit Filled The Bank-Sized Gap
- Michael Gross says private credit has moved into senior secured lending as banks retreated post-GFC, changing the industry's role.
- He notes $250bn poured into non-traded BDCs and spread compression that pressured returns.
Too Much Capital Compressed Spreads And Risk
- Gross warns rapid capital inflows compressed yields and relaxed underwriting as sponsors gained leverage over lenders.
- He links higher leverage, looser covenants, and lower spreads to potential future defaults and larger loss given default.