News & Analysis

Loan Note: Defaults on the up but maturity fears misplaced; two different views of private debt prospects

Defaults in private credit are on the rise, but unlikely to go much above historic averages; SR Alternative Credit outlines five reasons why the asset class is poised to flourish; while a State Street survey challenges notions around investor preferences. Here's today's brief for our valued subscribers only.

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They said it

“Deployment in private markets has slowed down and we have reached a crossroads: it takes (more) time to agree on value in this new context”

Taken from an AllianzGI study, Outlook 2023: Private markets at a crossroads.

First look

Defaults on the rise: but only to normal historic levels (Source: Getty)

Back to the future for defaults
It’s a given that private debt defaults will rise due to economic slowdown, but the question is by how much? A market comment from Christophe Fritsch, global head of alternative credit at AXA IM, suggests a...

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