Asks for perspective on macro, portfolio distress vs. risk appetite, and need for additional rate cuts in 2026.
Leslie Picker
Jonathan Gray
Sees a pretty good macro environment with 9% revenue growth in private equity driven by AI CapEx boom. Notes weakness in middle-to-lower consumer segments (theme parks, hotels) and a softening labor market with wage growth slowing to ~3%.
Jonathan Gray
Overall picture is resilience with softer consumer, weaker labor, and slower inflation numbers that should allow the Fed to cut rates, which is good for the economy and their business.
Asks if 25 bps cut is enough or if portfolio needs more easing to prevent concerns from getting out of control.
Leslie Picker
Jonathan Gray
Fed likely to cut rates due to parts of economy tied to capital intensity (housing, commercial real estate construction). Lower rates would help consumers and companies.