Maybe the only thing riskier than JPMorgan’s multifaceted private credit strategy is ignoring private credit entirely
No other bank has been as expansive in its attempts to join this market

As direct lenders seek efficient, scalable financing tools, private credit CLOs are growing fast
PCLOs have reached USD 135bn, or 13% of the overall CLO market

Are unusual deals from Clearlake and JPMorgan signs of things to come?
Deals that would have gone to public markets switched to private credit

Jamie Dimon’s JPMorgan is angling to be a major private credit lender. But it may come back to bite

Fears about rates and the economy have dwindled and the outlook is positive
Bond yields are rising but capital markets remain full speed ahead

This time around, BlackRock will be poised to be a shaper of the move
USD 12bn seems a lot to pay for HPS. But BlackRock urgently needed to catch up in private credit

Secondaries have become an essential part of the private equity ecosystem
As PE funds hold companies for longer, GPs are finding new ways to generate distributions

The second Trump presidency is likely to turbocharge already frothy markets
The impact of Trump’s second term in the Oval Office will be wide-ranging for the US and the world. For credit markets, his return to power portends more intense competition between banks and private credit, and frothier deals.

Private credit lenders don’t have to put up with exotic assets and complex structures — they can choose SRTs
If rapid growth and diversification into exotic asset classes, complex structures, opaque valuations, PIK-ing, etc, all sound a bit 2008, there are alternatives. Private credit is not a monolith nor, in some parts, is it a crowded trade.

As investors struggle with data overload, they are missing opportunities
Investors are challenged today with so much data and distraction coming at them from every angle. This makes it tough to see the big picture — which in the US actually looks pretty good.

As asset managers win market share in direct lending, JPMorgan and Citigroup are trying different ways of working with them
Two of the stalwarts of corporate lending are embarking on partnerships with asset manager upstarts. The difference in their approach is illustrative.

Diversification is driving direct lending allocations in Italy and Canada
In recent visits to Milan and Toronto, we heard how private capital is becoming accepted as a core allocation in institutional investment portfolios

US spending remains resilient despite financial worries
Consumption accounts for just under 70% of the GDP of the world’s largest economy. The good news is that (repeated) reports of the death of the US consumer seem greatly exaggerated.

By raising billions, private credit funds are causing a seismic shift in leveraged finance
Private credit funds are amassing a huge war chest that’s permanently changing the complexion of the leveraged finance market

Unlike the fast and furious movers in public equities, private credit delivers steady income streams
With little way out short of refinancings or company sales, portfolio construction is everything in private credit. How loans perform reflects directly into investor returns. 

As high rates hurt borrowers, private credit firms are hoping for an uptick in M&A
2020 vintage investments have distributed more than 80% less cash