Private credit loss rates don’t support draconian headlines
Direct lending loss rates compare favorably to much of the leveraged finance market, as this week’s chart shows.
Private credit valuations proven conservative over time
Private credit investors’ realized losses have been about half that of unrealized markdowns during the past three periods of market stress.
As private credit grows, underwriting standards remain healthy
Lenders requiring more equity and less leverage, suggesting healthy private credit lending standards.
As advisors redeploy cash, alternatives are in focus
Advisors expect to reduce their clients’ cash allocations this year. Alternatives, multi-asset and real asset investments are among the major beneficiaries.
Flat returns for core fixed income over five years
The Agg’s returns are flat since April 2019. Persistent inflation amid firm growth provides a challenging outlook for core fixed income.
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.
