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While enthusiasm grows as lower interest rates hint at a revival of dealmaking, the future for defaults and interest coverage ratios remains mixed.
With the interest rate environment once more the talk of the town, private debt will have to adjust to another new reality.
A difficult environment for fundraising skews the odds in favour of the largest managers.
Heightened capital costs are increasing stress for real estate borrowers in the UK and Europe.
Interest rates are staying higher for longer, debt service is piling up and liquidity is falling at some business development companies. What could possibly go wrong?
No big ‘easing cycle’ expected; keep an eye on upcoming waves of maturities, reports say.
Business development companies are expecting strong income and dividend coverage but there are also headwinds to contend with. PDI examines the views of two rating agencies.
The testing market makes this the ideal time to assess which managers have the most resilient portfolios, says MV Credit’s Frédéric Nadal.
Default rates are starting to increase in the upper mid-market, making credit terms more important than ever, says TPG Twin Brook Capital Partners’ Kim Trick.
Strategic value and rapid growth in Europe mean that private debt is now a highly significant asset class, says Arrow Global Group’s Zach Lewy.