The long cycle has caused a dearth of workout specialists as lenders and borrowers seek to modify loans.
More and more LPs are embracing opportunities in credit secondaries, but the sector remains undercapitalised.
Weak European growth and rising defaults are tipping companies into the sweet spot for opportunistic credit.
A lack of genuine distressed debt opportunities is leading some GPs to consider whether this strategy is still a valid play.
Tough times may lie ahead for the UK – but will expectations for distressed activity be realised this time?
Several big hitters are now in the market with ambitious opportunistic credit strategies, hoping to capitalise as LPs turn away from conventional distressed plays. So, what has prompted this change of tack?
The firm reported a 51% jump in its private credit fourth-quarter earnings year-on-year.
The NAIC has proposed changes that would create barriers or remove incentives for insurers to invest in private credit.
Investors are understandably nervous about Chinese private credit, but there are still opportunities for those willing to seek them out.
Opportunities are opening up for private credit investors in markets such as India and Australia, but domestic banks are fighting back in Southeast Asia.