It was a pleasure to welcome Wayne Dahl, Co-Portfolio Manager of Global Credit Strategy at Oaktree Capital Management, to the Alpa Exchange.

We begin with Wayne’s path through convertible arbitrage, structured credit, and multi-asset investing, and how that foundation informs a framework centered on understanding sensitivities across rates, credit, and equity exposures. Convertible arbitrage, in particular, serves as an entry point into managing multiple dimensions of risk simultaneously, reinforcing a core principle: avoiding large losses is essential to long-term compounding.

We explore Oaktree’s consistent investment philosophy—one that prioritizes credit fundamentals over macro forecasting and emphasizes patience in periods of compressed risk premiums. Wayne reflects on environments like 2021, where low yields and tight spreads challenge investors to remain disciplined, and contrasts that with the more attractive all-in yields that have emerged following the shift in rates since 2022.

The conversation next considers today’s landscape. Here, Wayne walks through how the firm is positioning across liquid credit markets, highlighting areas such as residential mortgage-backed securities and shorter-duration, high-income instruments as ways to balance yield with risk control.

We close with a discussion on AI-driven dispersion, energy-driven uncertainty, and the importance of portfolio construction across geographies, sectors, and structures in navigating an increasingly complex environment.

I hope you enjoy this episode of the Alpha Exchange, my conversation with Wayne Dahl.