2024-04-13 08:25:00 ET
Summary
- On the plains of Africa, you’ll find a surprising cooperation between two typically adversarial animals—the drongo bird and the meerkat.
- As banks increase their risk appetite, which they have in recent months given the strong macroeconomic backdrop, they will start putting more capital into the market in the form of BSL commitments.
- While both BSL and DL can coexist in the same market, there can be a downside to increased competition between the two debt structures.
By Anant Kumar, Managing Director, Head of US Research, Benefit Street Partners
On the plains of Africa, you'll find a surprising cooperation between two typically adversarial animals-the drongo bird and the meerkat. What makes the relationship especially vexing is that they both covet the same food. But instead of being fierce adversaries, they maintain a symbiotic partnership. When predators of the meerkat are in the vicinity, the drongo bird will give out a warning cry, alerting the spirited mammals of the danger. The meerkats quickly scurry back to their burrows, and in their haste often drop a bit of food. The drongo swoops in and grabs the free meal, while the meerkat huddles in his hole, avoiding the predator. A win-win....
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A Story About The Drongo, The Meerkat And Debt Markets