Michael Gatto (Silver Point Capital) on what decides a lender's recovery: the credit agreement, not the default.

A lender can be right about the business and still lose money. Josef Pschorn speaks with Michael Gatto about the second question a credit committee tends to skip. Not whether a borrower defaults, but what value and control leave the structure when a structure cracks.

Shownotes and analysis: https://www.fixedandfloating.com/

Michael Gatto: Partner and Head of Private Side Businesses, Silver Point Capital.

LinkedIn: https://www.linkedin.com/in/michael-gatto-8a322b66/

Silver Point Capital: https://www.silverpointfinance.com

The Credit Investor's Handbook: https://www.amazon.com/Credit-Investors-Handbook-Leveraged-Distressed-ebook/dp/B0CR4MMD29?ref_=ast_author_mpbMichael's latest articles: https://www.silverpointcapital.com/uploads/2026/05/47c34854a238cfef86eb78e3800da100/what-questions-should-allocators-ask-when-evaluating-direct-lending-managers.pdfhttps://www.silverpointfinance.com/images/news/pdf/What%20Can%20We%20Learn%20From%20First%20Brands%20-%20SPC%20Credit%20Lessons.pdf
Connect with Fixed + Floating: https://www.linkedin.com/company/fixed-floating | https://twitter.com/FixedFloating |

Fixed + Floating is for informational purposes only. Not investment, legal, or tax advice.

Recorded: 10.09.2026

#fixedfloating #creditmarkets #privatecredit #liabilitymanagement #directlending

Ankur Patel⁠ (Ares Credit Group) on asset-based finance for data centres, power and GPUs.

A one-gigawatt data centre costs $15–20 billion to build. The GPUs and servers inside it can run $40 billion-plus, and they are the shortest-lived asset in the project. Josef Pschorn speaks with Ankur Patel about how that credit is structured so a lender is not relying on residual chip value to get repaid.

Shownotes and analyis: https://www.fixedandfloating.com/⁠

Ankur Patel: Partner, Ares Credit Group (Alternative Credit).

LinkedIn: https://www.linkedin.com/in/ankurjpatelcfa

Ares Management: https://www.aresmgmt.comConnect with Fixed + Floating: LinkedIn ⁠https://www.linkedin.com/company/fixed-floating⁠ | X ⁠https://twitter.com/FixedFloating⁠ Fixed + Floating is for informational purposes only. Not investment, legal, or tax advice.Recorded: 11.08.2026#fixedfloating #creditmarkets #assetbasedfinance #privatecredit #gpufinancing #datacenters #aiinfrastructure

An amend-and-extend moves the maturity and leaves the leverage where it was. A debt-for-equity swap cuts the debt and dilutes the equity. The first is routine and the second is rare, and the constraint is not legal - most of the holder base cannot take the equity or does not want it.

Josef Pschorn speaks with Mike Harmon of Stanford Graduate School of Business about why out-of-court restructurings extend maturities without reducing debt, and what has to be true before a company actually deleverages.

• Once a company is worth less than its debt, the equity is an out-of-the-money call option, so shareholders buy time and volatility rather than repair the balance sheet
• Without maintenance covenants, creditors cannot force a reduction in debt
• Most of the holder base does not want equity: CLOs have equity buckets, mutual funds have mandates, and only distressed funds want the position
• Creditors are not one actor - a lender hedged with CDS or a par lender who has not marked down has a different payoff from a discount buyer
• Private credit changed the composition of the holder base rather than the law, which is where debt-for-equity swaps are actually getting done
• The US has liability management at one end and Chapter 11 at the other with nothing in between, while the UK, Japan, France and China all run a lighter court-supervised path

Mike Harmon: Stanford Graduate School of Business. https://www.linkedin.com/in/mike-harmon-92b130184

The Financial Restructuring Tool Set (Columbia University Press): https://cup.columbia.edu/book/the-financial-restructuring-tool-set/9780231216982/

Liability Management’s Limited Runway: Corporate Restructuring Today, Mark J. Roe, Vasile Rotaru - Oxford Business Law Blog

Connect with Fixed + Floating: LinkedIn https://www.linkedin.com/company/fixed-floating | X https://twitter.com/FixedFloating

Fixed + Floating is for informational purposes only. Not investment, legal, or tax advice.

Recorded: 24.08.2026

#fixedfloating #creditanalysis #liabilitymanagement #distresseddebt #restructuring #privatecredit