Episode summary
Bloomberg Businessweek Weekend - May 15th, 2026 | Bloomberg Businessweek
Bloomberg Businessweek Daily
· · 40 min · Hosts: Carol Massar, Tim Stenovec
Summary
The episode centered on two stress points in the economy: renewed pressure in private credit and evidence that lower- and middle-income consumers are still feeling the squeeze from higher prices, especially gasoline. The host framed the week around hotter April inflation, a harder path to a rate cut later in 2026, and the Senate’s narrow confirmation of Kevin Worsh as Fed chair, but the first major discussion focused on whether private credit is showing signs of a broader trust problem after fund redemptions, markdowns, and worries about liquidity.
Key takeaways
- The host highlighted concerns that private credit stress may be turning into a trust problem, with redemptions and markdowns raising questions about liquidity.
- Michael Gross argued that too much capital has been raised too quickly in non-traded BDCs, pushing some managers to loosen discipline.
- Gross said SLR Capital had zero non-accruals, a 50 basis point decline in net asset value, and 7% ROE, helped by just 2% software exposure.
- Denise Palonus said Sally Beauty is seeing pressure from gas prices, but customers are still buying essentials like hair color, nail gel, and press-on nails.
- The host noted that retail sales rose for a third month in April, suggesting consumer resilience even as sentiment surveys show anxiety about prices and jobs.
Notable quotes
“the conditions were similar to what we saw back in 2007, highlighting significant risks and potential domino effects”
“I think the mechanism is already underway and the mechanism is a decline or elimination of trust”
“there are a lot of investors out there who don't quite realize what they were sold in terms of liquidity”
“our Sally brand uh up 4.4% here in the US. But that said, we do serve a lower middle- inome consumer”
How the episode opens
Bloomberg Audio Studios, podcasts, radio, news. — This is Bloomberg Business Week Daily, reporting from the magazine that helps global leaders stay ahead with insight on the people, companies, and trends shaping today's complex economy. Plus, global business, finance, and tech news as it happens. The Bloomberg Business Week Daily podcast with Carol Masser and Tim Stenc on Bloomberg Radio.
Hi everyone, welcome to the Bloomberg Business Week weekend podcast. It was another busy week with the economic environment really top of mind. US inflation accelerated in April on rising gasoline and grocery costs, exceeding wage growth in a double whammy for already strained consumers, and got to say lowering the chance for an interest rate cut later on this year.
Plus, the Senate narrowly confirmed Kevin Worsh as Fed chair, setting up the most controversial leadership transition at the central bank in decades. Also really a test of its political independence with the slimmest confirmation margin ever.
Yeah, I know it's going to be an interesting Fed going forward. With that in mind, we have a really great look at consumer health and how the lower and middle inome consumers may be cutting back on spending to deal with the squeeze. Sometimes you just got to go to things that people just do on a regular basis.
We caught up with the CEO of Sally Beauty, who joined us to talk earnings and the company's third quarter outlook and again get that read on the consumer.
Plus, the Hollywood Reporter calls it quote this season's must-see Broadway revival. We catch up with the co-directors of Cats the Jellico Ball. It's a musical revival nominated for nine Tony Awards. — All right, all of that to come. We begin with a smart look at private credit. The new head of the US Securities and Exchange Commission's enforcement division said keeping an eye on stress in the private markets is one of his top priorities during his first week on the job after funds saw a surge in redemption requests and limited withdrawals.
From the episode’s captions: roughly the first two minutes, lightly cleaned. Keep watching on YouTube →
Topics
- business and finance
- global technology
- politics
- economics
- world news
Watch the episode
Watch “Bloomberg Businessweek Weekend - May 15th, 2026 | Bloomberg Businessweek” on YouTube
Summary, takeaways and quote selection by Octagon. Quotes are short excerpts; the full conversation is in the episode.
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