Geopolitics are a potential menace to public debt markets that could present opportunities for private lenders, according to Mike Dennis, co-head of EMEA credit at Ares Management. “The capital markets in general are still pretty fragile,” Dennis, tells Bloomberg News’ Lisa Lee and James Crombie, and Bloomberg Intelligence’s Stephane Kovatchev in the latest Credit Edge podcast. “It wouldn’t take much for that liquidity to reverse out of the system,” he said. Volatility may open the door for private credit firms to participate more in larger corporate loan deals, Dennis says. Also in this episode, BI’s Kovatchev analyzes the shipping sector after a 300% increase in freight rates. Greater supply of ships coupled with fading demand are expected to relieve some of the price pressure, Kovatchev says. See omnystudio.com/listener for privacy information.