Economy

The growth of speciality finance is helping to drive the market.

A second survey has backed up an existing one in identifying a declining private debt default rate. The omens for portfolio company performance are promising.

The downgrades follow from the macro context and vulnerability of certain classes of assets.

Jensen Partners reports that a wave of acquisitions is under way in the private credit industry, and that it is driving up the value of talent. 

In the face of growing cost pressures, there are few signs that private debt borrowers are experiencing widespread distress.

There is still caution to be overcome, but borrowers are increasingly turning to non-bank lenders due to accommodating regulation and various perceived benefits, say Giancarlo Castorino, Nicolò Perricone and Giulia Venanzoni.

Majority ownership shifts to the senior lenders, led by Arbour Lane, as debt is cut substantially.

Current monetary policy and economic conditions are creating favourable conditions for the asset class says Bruce Richards of Marathon Asset Management.

The past 10 years has seen debt move firmly into the investment mainstream, with signs of continued growth ahead.

Konstantin Danilov of VRS Restructuring Services examines the factors affecting the financial markets.