AI Can Tell Us Something About Credit Market Weakness

In this episode of the Odd Lots podcast, hosts Joe Weisenthal and Tracy Alloway interview Dan Wertman, co-founder of Noetica AI, about the use of AI in understanding credit agreements and deal terms. They discuss the increasing prevalence of structural protections in credit deals, the anxieties driving these changes, and the impact of off-balance sheet financing in the AI market. Wertman explains how Noetica AI helps transactional attorneys, credit managers, and bankers benchmark deal terms using AI-powered software and a vast knowledge graph of deal terms. The conversation also covers specific examples of deal terms, such as anti-PetSmart terms and J.Crew blockers, and the implications of these terms for risk allocation in the market.