A Revolution in Credit Markets

The podcast explores the evolution and future of credit markets, particularly focusing on private credit and the financing of the next industrial revolution. Dan Toscano, Chairman of Markets in Private Equity at Morgan Stanley, shares his experiences from the early days of junk bonds to the current landscape. The conversation highlights how leverage lending guidelines inadvertently fueled the growth of private credit and how their relaxation will blur the lines between public and private markets. A key focus is on the massive capital investment needed for digital infrastructure, including data centers and power sources, potentially requiring trillions of dollars. Toscano expresses concerns about potential overreactions in 2026 when problems inevitably emerge in these large-scale buildouts, particularly regarding supply chain issues and labor costs.