More of our insights
As private credit grows, underwriting standards remain healthy
Lenders requiring more equity and less leverage, suggesting healthy private credit lending standards.
![Column chart depicting 2022, 2023 and 2024 lending requirements, showing lenders required more equity in deals and less earnings leverage over the past three years. The percentage of deals requiring greater than 45% equity in deals went from 25% in 2022, 49% in 2023 and 55% in Q1 2024. Earnings leverage requirements of 6x or lower increased from 18% in 2022, 54% in 2023 to to 55% in 2024.](https://fsinvestments.com/wp-content/uploads/2024/05/COTW_2024-05-10_thumbnail-247px.jpg?w=250&h=150&crop=1)
Is private credit a bubble?
Private credit has grown in both size and breadth, prompting questions around the risks of the asset class and whether it could represent a bubble. We address those concerns in this note.
![image of a bubble](https://fsinvestments.com/wp-content/uploads/2024/05/Private-credit-in-a-bubble_img_2x_insights_1442x1004.jpg?w=250&h=150&crop=1)
FireSide: Answering the burning questions around private debt – Part 1
Private debt is a rapidly expanding market that has become critical for the U.S. economy and an opportunity for investors. In Part 1, we discuss the fundamentals of the market and trends driving its growth.
![Private debt Cooling Dunes, Death Valley](https://fsinvestments.com/wp-content/uploads/2024/03/GettyImages-878894720-sky.jpg?w=250&h=150&crop=1)
Private credit attractive to sponsors and investors
Private credit has become PE sponsors’ primary source of financing for LBOs and M&A activity as the asset class becomes increasingly mainstream.
![Column chart showing private credit represents well over 50% of LBO and M&A financing since 2019, but only a small percentage of refinancing activity.](https://fsinvestments.com/wp-content/uploads/2024/04/COTW_2024-04-19_thumbnail-247px.jpg?w=250&h=150&crop=1)
Q2 2024 Corporate credit outlook: Drafting down the straightaway
Continued economic stability has fostered healthy fundamentals in most leveraged credit, but risks are accumulating in loans to lower-rated private borrowers.
![Formula One race cars driving](https://fsinvestments.com/wp-content/uploads/2024/04/Q2-2024-Corporate-credit-outlook_img_2x_insights_1442x1004.jpg?w=250&h=150&crop=1)
FireSide: Q2 2024 Research roundup—Adjusting to the old normal
Our experts dive into their outlooks for macro and markets in the second quarter.
![](https://fsinvestments.com/wp-content/uploads/2024/04/2024-Q1-research-podcast-img_2xInsights_1442x1004.jpg?w=250&h=150&crop=1)