TCW’s Koch Sees Rising Defaults But No Bubble in Private Credit
- Koch says investors still ‘sacrificing liquidity’ for spreads
- Oaktree Co-CEO says syndicated loan market may pose problems
Katie Koch
Photographer: Jeenah Moon/BloombergThis article is for subscribers only.
TCW Group Inc. Chief Executive Officer Katie Koch said she expects higher defaults in the $1.7 trillion private credit market, but that she doesn’t see a bubble as investors are still willing to trade liquidity for yield.
“We know there’s going to be demand for private credit, because there’s demand for people to pick up some spread for sacrificing liquidity,” Koch said Tuesday at the Bloomberg Invest conference in New York.