The GFC: A dramatic reshape of the lending landscape

Life would never be the same, and lenders were among those trying to make sense of it all. Andrew Hedlund reflects on several key ways in which the private debt asset class was moulded by a crisis.

In the week of 8 September 2008 – the last seven days of Lehman Brothers’ existence – one large alternative credit manager had arranged a syndicate of lenders to back an Alaska-based fisher and canner of tuna. All that was left to do was sign the commitment letter.

Over the weekend of 13-14 September though, the lending landscape changed, with Lehman ultimately seeking court protection the following Monday.