US billionaires and sovereign wealth funds are going to get more active in global sports investing, according to Andalusian Credit Partners. “The US invasion into other markets is just getting started,” Aaron Kless, the US middle-market direct lending platform’s chief executive officer, tells Bloomberg News’ James Crombie and Bloomberg Intelligence’s Arnold Kakuda in this episode of the Credit Edge podcast. “A lot of the largest sovereign wealth funds are interested in getting deeper into sports investing,” adds Kless, whose firm focuses on sports, media and entertainment. Kless and Kakuda also discuss the next big sports deal, the high cost of being a fan and how not to get trapped in the vanity play.

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Ares Management, the $550 billion alternative investor, expects private lenders to get more involved in funding Europe’s rearmament. “We are starting to see more defense opportunities come across the desk,” Mike Dennis, the company’s co-head of European credit, tells Bloomberg News’ James Crombie and Bloomberg Intelligence’s Jeroen Julius in this episode of the Credit Edge podcast. “We would tend to be cautious — we need to listen to what our LPs’ appetite for those types of businesses are,” says Dennis, referring to Ares’ limited partners and their environmental, social and governance concerns. Dennis and Julius also discuss middle-market loan pricing, private credit returns and where Ares might look to open up new offices in Europe.

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JPMorgan Asset Management is seeking hedges against credit market losses as risks rise and spreads tighten. “There’s value in shorts and credit protection,” Oksana Aronov, the firm’s head of market strategy for alternative fixed income, tells Bloomberg News’ James Crombie and Bloomberg Intelligence’s Jody Lurie in the latest Credit Edge podcast. “It is very undervalued today because of the complacency in the market,” says Aronov, referring to the high-grade credit default swap index. Aronov and Lurie also discuss the increasing amount of bond and loan interest being repaid with additional debt, dwindling recovery rates, private debt convergence and high-grade opportunities.

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