This week we continue our conversation with John Brignola, managing partner, LBC Credit Partners. LBC is a leading provider of middle market financing solutions supporting sponsored and non-sponsored transactions. LBC has over $1.75 billion of capital commitments and has made over $3.2 billion in investments in a wide range of industries located throughout North America. Second of two parts – View part one

The Lead Left: Speaking of which, where are we?

John Brignola: We’re certainly in a low-growth environment. When rates move, there will be businesses that can manage that and those that can’t. For example, I’m worried about manufacturers of large consumer discretionary items like recreational vehicles or boats. They could be seeing the end of low-cost financing for their products.

TLL: How long until a downturn?

JB: I think we’re still 3-5 years out before the next cycle. The bond market may be an indicator. Two years ago, high yield [prices] traded off when Treasuries traded off. Now we’re actually seeing high yield prices go in the other direction as Treasury prices have been declining.