The LME Era: Scale, Co-ops & Lender-On-Lender Risk with Aegon Asset Management
Description
Season 2, Episode 2
On this episode of LFI Levered Lines, host Tom Davidson sits down with Aegon AM’s Jim Schaeffer, Global Head of Leveraged Finance, for a candid look at today’s bifurcated credit markets and the evolving playbook for liability management.
Jim traces his path from distressed debt to leading global lev fin, and explains how a “downside-first” mindset and all-weather discipline shape his team’s approach. He breaks down why spreads remain tight despite persistent macro headwinds, where the 6–10% of challenged credits are clustering, and how recurring LME waves are resurfacing as higher-for-longer rates, inflation pressures, and input costs continue to weigh on borrowers.
The conversation dives deep into LME mechanics - what “good business, bad balance sheet” really looks like, why scale and speed determine who influences outcomes, and how cooperation agreements can curb lender-on-lender violence. Jim contrasts collaborative, broad-support transactions with more coercive, document-driven structures that re-tier lenders and spark litigation, offering telltale signs to spot each path early.
United States
