Fixed Income
Private Credit Is Eyeing Bigger Margins on Loans: Credit Weekly
- Volatility this week may take some steam out of market: Golub
- Private credit loan margins have tightened by at least 100 bps
The $1.7 trillion private credit industry has grown rapidly in the past few years, as higher rates forced buyout firms to look further afield for funding while traditional lenders pulled back.
Photographer: Michael Nagle/BloombergThis article is for subscribers only.
The turmoil in global markets this past week is causing private credit funds to question whether they should reconsider the ever-tighter loan margins they’re demanding.
Industry stalwarts such as Ares Management Corp. and Blackstone Inc. have been charging less for private credit for most of this year, according to data compiled by Bloomberg News, as they try to snatch business away from the syndicated loan market. But that strategy may change after recession fears have risen amid a slew of worrying economic reports.