Private Credit – Better than Ever
Over the past five months, we’ve examined the impact of COVID-19 on the economy and the markets and interviewed top private equity and investment banking partners on deal making in the U.S.
What’s largely lost in media reporting is the dramatic turn in private credit.
This asset class emerged from Great Recession to become one of the fastest growing for fundraising and investing. Various trends, greater bank regulation, vast PE dry powder, soaring valuations – all pushed issuer terms to increasingly competitive levels.
Credit investors found themselves having to choose either the largest fund managers, who won transactions with the least investor-friendly terms, or opportunistic lenders offering higher yields…with much higher risk…
▶︎ Read Aug 17 2020 newsletter: here
▶︎ Chart of the Week: here (by TSA, Statista)
Latest news
US Leveraged Loans Return 3.36% to Investors YTD
The Bloomberg US Leveraged Loan Index (Ticker: LOAN) returned 0.96% in August and has gained an additional 0.28% through September…
PE dry powder
The capital that is being raised is flowing overwhelmingly to the largest, most established managers.
Middle market debt held by BDCs vs High yield vs Treasury yields
The blue line represents the current dividend yield of the VanEck BDC Income ETF (BIZD), which stood at 11.7% as…