AI Can Tell Us Something About Credit Market Weakness | Dan Wertman | Odd Lots

There have been some wobbles in credit markets lately. It hasn't been too dramatic, but we've had some blowups, leading Jamie Dimon to speculate about the presence of other "cockroaches" lurking in the industry. But what do we actually know about the quality and practices of credit underwriting right now? Dan Wertman is the co-founder and CEO of Noetica, a startup that uses AI to scan deal documents and measure linguistic and term trends over time. Dan talks to us about what he's been seeing in the language of deal documents, and why there are reasons to think that more blowups are lurking around the corner. He also talks to us about how credit agreements are structured in the AI space, and how we should understand some of these huge data center financing deals we've seen lately.

DISCORD:

Join the conversation, discord.gg/oddlots

Subscribe to Bloomberg Podcasts

#Bloomberg #Podcast

Follow Bloomberg Podcasts on Twitter

Visit our other YouTube channels:

Bloomberg Television

Bloomberg Originals

For coverage on news, markets and more

[00:00:00] - Introduction

[00:01:29] - Episode Introduction and Context Setting

[00:04:58] - Guest Introduction and NOETICA AI Overview

[00:08:00] - Understanding Deal Terms and Market Evolution

[00:11:18] - Structural Protections and Market Fortification Trends

[00:18:45] - Market Dynamics and Power Shifts

[00:22:20] - AI Technology and Innovation in Deal Analysis

[00:28:18] - Credit Market Distress Signals and Analysis

[00:31:28] - First Brands Case Study and Off-Balance Sheet Financing

[00:34:31] - AI Market Circular Financing Structures

[00:40:31] - AI Market Future and Risk Assessment

[00:43:30] - Conclusion and Key Takeaways