Credit stress is beginning to reappear in parts of the economy—especially in private credit markets where institutional capital has surged in recent years.
In this episode of Exploring Prosperity, I sit down with veteran distressed real estate investor Bill Landis, co-Founder and Managing Partner of Raith Capital Partners, to break down what actually happens when markets stop clearing. We explore how distressed capital restores liquidity, how assets transition into stronger hands, and why this process becomes essential when traditional lenders pull back.
If the current strains in credit markets continue to build, understanding this overlooked part of the financial system may be key to understanding what happens next.
Topics include:
Early signs of stress in private credit markets
How distressed investors provide liquidity
What happens when financing disappears
Why long periods of calm create hidden risks
What a true credit cycle looks like
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Read about this episode: https://open.substack.com/pub/robertd...
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Timestamps:
00:05 – Introduction: Why Credit Stress Is Reappearing
01:05 – Are Cracks Forming in Private Credit Markets?
02:45 – The Hidden Risk: Liquidity Mismatches & Redemptions
04:15 – How Credit Stress Spreads Across Markets
05:45 – Mini-Crises vs Major Crises (Post-2008 Reality)
07:30 – The “Medicated Economy”: Government Backstops Explained
09:00 – What Distressed Investors Actually Do
12:00 – How to Invest When There Is No Distress
16:00 – Finding Opportunity: Housing, Industrial, and Demographics
20:00 – Institutional Capital: Stabilizer or Distortion?
24:30 – How Government Intervention Restores Liquidity
30:30 – Why Real Distress Has Been Scarce (Even After Rate Hikes)
33:30 – Where the Edge Comes From in Real Estate Investing
38:30 – New Opportunities: AI, Data Centers, and Mispriced Assets
43:30 – Case Study: San Francisco Real Estate Recovery
49:30 – The State of Distressed Investing Today
56:00 – Macro Risks Ahead: Oil, Debt, and the Next Downturn
