How is private credit weathering its first big rate hiking cycle?

Quick Summary:

An index of defaulted private credit loans created by the law firm Proskauer increased for three straight quarters to 2.71 per cent at the end of June, but fell back to 1.95 per cent in the third quarter.

The locked-up money should mitigate ripple effects from one or several private credit funds going bad, but the IMF still sounds a bit worried — not least by potential blowback into the mainstream banking industry, which has lent plenty to private credit funds.

This is why interest rates coming would be such a boon to private credit.

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Article Details

Author / Journalist: Robin Wigglesworth

Category: MarketsFinanceInvesting

Markets: United States

Topics: Interest Default Cent Income Rates Credit Private Funds Companies Loans Rate

Source Website Secure: Yes (HTTPS)

News Sentiment: Neutral

Fact Checked: Legitimate

Article Type: News Report

Published On: 2024-11-21 @ 11:20:55 (13 hours ago)

News Timezone: GMT -5:00

News Source URL: ft.com

Language: English

Article Length: 1929 words

Reading Time: 11 minutes read

Sentences: 78 lines

Sentence Length: 25 words per sentence (average)

Platforms: Desktop Web, Mobile Web, iOS App, Android App

Copyright Owner: © Financial Times

News ID: 23735988

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