Blast From The Past: Bear Stearns' 2006 Annual Global Credit Conference - Groupthink Defined
Ah, the halcyon days of 2006, when the bubble was cranking, rates were stable and rising, Bernanke was brand new and few realized he would was yet to become the destroyer of capitalism, when subprime was only known to a select few future billionaires, when Bear Stearns was alive and well and was organizing credit conference at the Waldorf Astoria (instead of arranging credit for itself in advance of going bankrupt in 2008) during which nobody said anything relevant (that includes Bear's then chief economist David Malpass) and where participants merely reinforced each other's fallacious groupthink, capped by Peyton Manning as keynote speaker of all people. Companies presenting were all the current and future LBO hits (which would soon undergo Chapter 22 and in some cases 33). We are only amazed that Bear hasn't risen from the dead to recreate the credit conference below, coupled with full bubble frothiness and all other bells and whistles.
From: TERRY CASSIDY, BEAR, STEARNS & CO.
At: 5/12 12:49:49
The Bear Stearns Fifteenth Annual Global Credit Conference will be held on Tuesday, May 16 and Wednesday, May 17, 2006 at the Waldorf=Astoria in New York City. Attached please find an updated conference agenda and
information on the keynote presentations and panel discussions. We look forward to seeing you at the conference.
Tuesday, May 16
KEYNOTE PRESENTATIONS & PANEL DISCUSSIONS
8:15 a.m. "Economic Outlook: More-Than-Expected Growth, Profits, Inflation and Rate Hikes" (Astor Salon)
David R. Malpass, Senior Managing Director & Chief Economist, Bear, Stearns & Co. Inc.
* For now, plentiful liquidity
* Late in 2006, a shift to a capital diet and wider credit spreads
9:00 a.m. "Impact of Credit Derivatives on the High Yield Market" (Astor Salon)
Michael Mutti, Managing Director Principal, Bear Stearns Corporate Credit Strategist
This presentation will include a discussion of CDX indices, 2005 credit events, recovery market and common CDS trades.
9:00 a.m. Competitive Broadband Panel: Bundling Video, Voice and Data (West Foyer)
Moderator: Todd Henrich, Managing
Director, Bear, Stearns & Co. Inc.
Peter D. Aquino, President & Chief Executive Officer, RCN
Roy Chestnutt, Chief Executive Officer, Grande Communications
Rodger L. Johnson, President & Chief Executive Officer, Knology, Inc.
Chief Executive Officer's from three of the nation's largest competitive broadband service providers will discuss the ways each of them continues to compete for and win new customers by offering bundled video, voice
and data services.
9:45 a.m. "Everything You Always Wanted to Know About Second Lien Financings" (Astor Salon)
Marc D. Jaffe, Partner, Latham & Watkins LLP
Michele O. Penzer, Partner, Latham & Watkins LLP
Mark A. Broude, Partner, Latham & Watkins LLP
Partners from Latham & Watkins LLP, the leading law firm in leveraged finance and a pioneer in second lien financings, discuss recent developments in second lien bank and bond financings, differences in the bank and bond products and important bankruptcy considerations.
10:30 a.m. "Views Across Corporate Credit - Themes,Strategies and the Search for Value" (Astor Salon)
Victor Consoli, Senior Managing Director, Bear Stearns Corporate Credit Strategist
Is the corporate credit market broken, where fundamentals can be at odds with technicals? In this technically driven market, fueled by the bid from structured products and the lack of an apparent adverse catalyst, credit investors have seldom been more challenged to find value.
11:15 a.m. "Can It Be More Borrower Friendly?" (Astor Salon) Moderator: Bram Smith, Leveraged Loan
Capital Markets & Distribution, Senior Managing Director, Bear, Stearns & Co. Inc.
Diane Exter, Managing Director, Sankaty Advisors
James Ferguson, Founding Partner and Senior Portfolio Manager, Octagon Credit Investors, LLC
Christopher Jansen, Managing Partner and Fund Manager, Stanfield Capital Partners LLC
Greg Stoeckle, Managing Director, Senior Portfolio Manager and Head of Bank Loan Group, INVESCO Inc.
Bram Smith, head of Bear Stearns' Leveraged Loan Capital Markets and Distribution, along with a panel of institutional investors, will discuss how loan investors can cope in today's issuer-friendly market. The panel will examine the impact of liquidity on loan pricing, changing investor landscape, changing loan structures, and investors' investment
12:00 Keynote Luncheon: "National SecurityChallenges and American Intelligence" (Grand Ballroom)
John E. McLaughlin, Former Acting CIA Director & Deputy Director
2:00 p.m. "Petrozuata and Cerro Negro: The Beginning of the End?"(Astor Salon)
Gersan R. Zurita, Senior Director, Global Project Finance, Fitch
This presentation will discuss the evolution of the credit characteristics of two of Venezuela's heavy oil strategic associations - Petrozuata and Cerro Negro. The operating outlook of the projects will be discussed within the context of government policy.
2:45 p.m. "Health Care Panel Discussion: Medicare Payment Spotlight - Perspectives from The Centers for Medicare & Medicaid Services" (Conrad Suite)
Moderator: Todd Corsair, Associate Director, Senior Health Care Analyst, Bear Stearns High Yield Research
Laurence D. Wilson, Director, Chronic Care Policy Group, Center for Medicare Management (Former Director, Division of Institutional Post Acute Care)
This presentation will discuss Dialysis, Skilled Nursing Facilities, Inpatient Rehabilitation Facilities, Durable Medical Equipment, Hospice and Home Health
Lambert van der Walde, Capital Markets Advisor to the Administrator This presentation will discuss long-term care hospitals, acute-care hospitals, diagnostic imaging, and any other Medicare-related topic including the new drug benefit.
2:45 p.m. "The Growing Role of State Owned Oil Companies--Credit and Relative Value Implications" (Astor Salon)
Ted Izatt, Managing Director Principal, Senior Energy & Basic Materials Analyst, Bear Stearns High Grade Research
Theodore M. Helms General Manager, New York Office, Petroleo Brasileiro S.A. Petrobras
What trends are driving the growing influence of the national oil companies and will they continue? What will the impact of these trends be on energy prices and on the publicly traded energy companies? What are the risks and opportunities for investors?
3:30 p.m. "Quantifying and Managing Gulf of Mexico Hurricane Risk to the Offshore Energy Market" (Astor Salon)
Ted Izatt, Managing Director Principal, Senior Energy & Basic Materials Analyst
Bear Stearns High Grade Research
Kenneth A. Travers, CFPS, CET, ARM, MBA, Senior Vice President, ABS Corporate Solutions/EQECAT
This presentation will discuss the impact from Recent Hurricane Seasons, Potential Hurricane Risk to Offshore Assets and Production, Quantifying Risk to Property and Business Interruption and Alternative Risk Transfer Solutions - Capital Markets.
Wednesday, May 17
KEYNOTE PRESENTATIONS & PANEL DISCUSSIONS
9:00 a.m. "Implications of a Slowing Housing Sector" (Astor Salon)
Dale Westhoff, Senior Managing Director, Head of Bear Stearns Quantitative Research
This presentation will cover origination trends and the changing mix of the outstanding mortgage universe,
including the rapid growth of ARMs and new affordability products. In addition, it will highlight the mortgage sectors most exposed to a slowing housing segment.
Sue Berliner, Managing Director Principal, Senior REIT & Homebuilders Analyst
Bear Stearns High Grade Research
This presentation will highlight the softer markets, use of incentives, cancellation rates and costs
9:45 a.m. U.S. Auto Sector: Outlook for the U.S. Auto Manufacturers and Suppliers in 2006-7 (Astor Salon)
Moderator: Alexi Coscoros, Managing Director Principal, Senior Auto Supplier Analyst Bear, Stearns High Yield Research
Kim Korth, President, IRN, Automotive Sector Market Research and Management Consultancy
Erich Merkle, Director of Forecasting, IRN, Automotive Sector Market Research and Management Consultancy
This panel discussion will include a short presentation followed by a moderated question and answer session on the current sales and production trends in addition to the outlook for new product launches for the U.S. and "New Domestic" Auto Manufacturers and the impact of new products and current OEM capacity reduction plans on the US Auto Suppliers.
10:30 a.m. U.S. Auto Manufacturers and Suppliers: The Bear, Stearns Credit Research and Credit Trading View on Investing in the Sector (Astor Salon)
Moderator: Alexi Coscoros, Managing Director Principal, Senior Auto Supplier Analyst
Bear, Stearns High Yield Research
Dan Ilany, Managing Director, Senior Autos Analyst, Bear, Stearns Investment Grade Research
James Kenny, Senior Managing Director, Head of Credit Flow Trading, Auto Manufacturers and Auto Suppliers
Tom Pernetti, Senior Managing Director, Senior High Yield Trader, Auto Suppliers
Dan Frommer, Senior Managing Director, Senior High Yield Credit Derivatives Trader, Auto Suppliers
This panel will include the presentation of Bear, Stearns Credit Analysts' views and investment recommendations on the U.S. Auto and Auto Supplier sectors followed by a moderated question and answer session mainly focusing on Bear, Stearns Credit Trading views on market technicals, trading liquidity, fund flows, trading patterns, etc.
11:15 a.m. "Outlook for the Economy, Rates, and Credit"
John Ryding, Senior Managing Director & Chief U.S. Economist, Bear, Stearns & Co. Inc.
* Why economic growth is likely to remain robust?
* How serious is the inflation threat?
* How far will interest rates rise?
* Outlook for the consumer and corporate America
12:00 Keynote Luncheon: "Leadership" (Grand Ballroom)
Peyton Manning, Quarterback, Indianapolis Colts