Private Credit Myth #3: We’re late in the cycle, so loans are risky


This week in our continuing special series on private credit myths, we come to:

Myth #3: “We’re late in the cycle, so loans now are risky.”

For issuers one of the virtues of private credit is being available when public markets aren’t available. Buy-and-hold private credit managers have locked-in capacity. Since the assets are not liquid, transactions can be structured with long hold periods and without relying a market take-out.

For investors, this means successful managers can operate through business cycles, regardless of market volatility. These managers don’t rely on investment timing, but deliver consistent returns with a premium over liquid asset yields…

#PrivateCreditMyth

▶︎ Read Feb 10 2020 newsletter: here

▶︎ Chart of the Week: here