Episode summary
Bloomberg Surveillance TV: July 31st, 2026 | Bloomberg Surveillance
Bloomberg Surveillance
· · 22 min · Hosts: Tom Keene, Paul Sweeney, Lisa Mateo, Michael Barr · Guests: Mike Arougheti, William Dudley, Robert S Walsh
Summary
Ares Management’s CEO said the firm is seeing strong demand across private credit, infrastructure debt, asset-based finance, and digital infrastructure, with $36 billion of inflows in the quarter and a 100 basis point margin increase year over year. He argued that AI is already improving operating efficiency inside Ares and portfolio companies, while the investment opportunity is best approached globally and across the full capital structure rather than by chasing one crowded trade.
He pushed back on the idea that private credit is breaking down, saying direct lending non-accruals are inside of 2% and that institutional demand is still accelerating as spreads widen. He also said Ares has about $170 billion of dry powder, but that capital is being deployed quickly because hyperscaler demand, data center development, and related infrastructure needs remain enormous.
Former New York Fed president Bill Dudley criticized the Fed’s communication after its latest press conference, arguing that markets need a clear reaction function even if forward guidance is reduced. He said credibility was damaged, that relying on market volatility to do the Fed’s work is inefficient, and that the committee may need to act more decisively in September. Lt. Gen. Robert Walsh then said the situation with Iran has become more dangerous, but that the Gaza ceasefire and Hamas disarmament deal could help isolate Iran and shape the next phase of U.S. and regional strategy.
Key takeaways
- The Ares CEO said the firm’s quarter included $36 billion of inflows and a 100 basis point year-over-year margin increase, helped by AI-driven efficiency.
- He said private credit fundamentals remain solid, with direct lending non-accruals inside of 2% and institutional demand accelerating as spreads widen.
- The Ares CEO said $170 billion of dry powder is being deployed quickly into digital infrastructure, infrastructure debt, and asset-based finance.
- Bill Dudley argued that the Fed hurt its credibility by not explaining its reaction function, even if it wants less forward guidance.
- Lt. Gen. Robert Walsh said the Iran situation is more dangerous, but the Gaza ceasefire and Hamas disarmament agreement could help isolate Iran.
Notable quotes
“Our clients continue to reward us due to our strong and consistent fund performance across our strategies”
“our non-acrruals across the direct lending business right now are inside of 2%”
“you can't outsource it to financial markets for a very simple reason. Markets don't price to what the Fed should do”
“the larger question is the situation with Iran getting um more dangerous”
“If it if it's a jump ball in September, you almost need to tighten now because you have lost credibility”
How the episode opens
Bloomberg Audio Studios podcasts radio news. This is the Bloomberg Surveillance Podcast. I'm Jonathan Pharaoh along with Lisa Abramitz and Amarie Hordern.
Join us each day for insight from the best in markets, economics, and geopolitics. From our global headquarters in New York City, we are live on Bloomberg television weekday mornings from 6:00 to 9:00 a.m. Eastern.
Subscribe to the podcast on Apple, Spotify, or anywhere else you listen. And as always, on the Bloomberg terminal and the Bloomberg business app. So, here's the latest this morning.
Aries reporting at earnings B highlighting another record quarter of fundraising with over 36 billion dollars of inflows. The CEO, Mike Aragetti, writing, "Our clients continue to reward us due to our strong and consistent fund performance across our strategies. Mike joins us now in the studio for more.
Mike, good morning. Good to see you.
Good morning. Good morning. I wanted to start with a quote of yours from earlier this year when things were pretty difficult with the software issue and you said something really important.
You said the following. If you're going to underwrite a narrative of AI disruption, you also then have to say, well, what does that mean for the productivity and margin improvement for the rest of your book? I think that's a good place to start.
Where are you seeing value being created right now? It
It's I'm glad I said that. So if you if you look at the way that Aries is playing uh the AI transformation, it's what are we doing within the data center and digital infrastructure space uh what are we doing within our portfolio companies and what's that productivity uplift and then what are we doing within Aries proper to either improve our investment outcomes or profitability.
From the episode’s captions: roughly the first two minutes, lightly cleaned. Keep watching on YouTube →
Topics
- global markets
- economy
- investment strategy
- finance news
- economic policy
Companies and tickers mentioned
- ARES
- Ares Management
Watch the episode
Watch “Bloomberg Surveillance TV: July 31st, 2026 | Bloomberg Surveillance” on YouTube
Summary, takeaways and quote selection by Octagon. Quotes are short excerpts; the full conversation is in the episode.
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