Debt markets – and the loan market in particular – don’t react to volatility as quickly as others. You could argue that they barely react at all. It was certainly the case following this week’s ‘Black Monday’ in China and the resultant stock market plunges across the world – over in mid-market corporate debt it was business as usual.
Friday letter: Opportunity in misfortune
Carnage in the global stock markets has some knock-on benefits for more sheltered private debt markets. Or, as the saying goes, one man’s loss is another man’s gain.
