While credit is “probably a four-letter word right now,” it is doing reasonably well, says Tom Majewski, founder and managing partner at Eagle Point Credit Management.

“But headlines around the space will continue, and perhaps that unto itself creates some credit challenges,” he adds on the latest episode of Credit Exchange with Lisa Lee.

Majewski unpacks the First Brands collapse and fraud in general, noting there’s been a significant decline of occurrences of fraud in the US economy since the Sarbanes-Oxley Act of 2002.

He also discusses liability management exercises (LMEs), or coercive restructurings, sharing Eagle Point’s upcoming research that shows there’s been over 100 LMEs in the last five years. “If there’s a little over 1,000 loans, that’s about a 2% LME rate per year, separate from defaults.”