Real yields on private credit could remain in their top historical quartile even if the Fed cuts another 75 basis points as markets expect.

Private credit investors’ realized losses have been about half that of unrealized markdowns during the past three periods of market stress.

Amid private debt’s massive growth, this week’s chart looks at the healthy yield premium of private credit transactions compared to public markets.

Direct lending loss rates compare favorably to much of the leveraged finance market, as this week’s chart shows.

Private credit has become PE sponsors’ primary source of financing for LBOs and M&A activity as the asset class becomes increasingly mainstream.

Why private credit? Private credit is an asset class that consists of investing in the debt of privately held companies. The terms “private credit” and “private debt” are often used interchangeably. Investing in the debt of private companies may provide an alternative source of income and diversification at a time when both are difficult to...

Our Chief Market Strategist examines the latest opportunities in private senior secured CRE lending.

This week’s chart looks at private CRE debt’s notable yield premium to cash, even as cash yields are elevated.

A missing piece of many private credit allocations In the wake of the Global Financial Crisis and a wave of regional bank failures in 2023, banks continue to rein in risk-taking, exit non-core businesses and narrow their focus to core sectors and clients. Private, non-bank lenders have stepped into the void to meet the diverse...