High-Yield and Private Credit
In our just-completed series on high-yield bonds, we concluded that issuer and investor activity has largely been driven by technical factors: near-zero interest rates, the Fed’s support of fallen angels, and skewed-to-worse ratings for leveraged loans.
How then should investors be thinking about the illiquid market?
Private credit has a different profile than tradable assets. It provides investors with steady income (and issuers with long-term credit solutions), regardless of market volatility.
As our Chart of the Week shows, middle market loans sport higher yields over time than other asset classes…
▶︎ Read June 8 2020 newsletter: here
▶︎ Chart of the Week: here
Latest news
European mid-market direct lending margins face steady compression since 2024
European mid-market direct lending margins have seen consistent compression over recent years but recorded a slight increase in the second quarter of 2026…
US leveraged loan issuance rebounds in September
Following three consecutive months of declining issuance, the US leveraged loan market has reversed course in September. Approximately $48.7b of…
Reversion to the Mean
Climbing toward the average is a very different story than surpassing it.