Deep Dive

The second quarter will be a crucial reporting period for business development companies, which target their capital at the US economic heartland of SMEs.

Many investors have come to private debt from fixed income and are conservative on risk/return. We examine those with bold takes on portfolio construction. Royal Mail is at the forefront.

Private equity firms and their lawyers argue that loosening the restricted payments covenant is necessary to ensure their interests match those of the borrower by keeping the sponsored company in financial good health. But it’s a controversial development, finds David Turner

The message from CLO investors is ‘come on in, the water’s lovely’ and, for the time being, this may hold true. But concerns about downgrades and lower-rated paper are growing. Irwin Speizer explores the threats

Fewer covenants can provide greater flexibility in dealing with portfolio company difficulties, but they may also prevent lenders from negotiating rescue plans with borrowers and sponsors. Andy Thomson and Andrew Hedlund investigate

An early adopter, Arizona State Retirement System has become a giant of the asset class. Andrew Hedlund visits its Phoenix offices to find out how its portfolio has been shaped and what the future holds

Marketplace lenders have a wealth of information at their fingertips, giving them what they think is a vital advantage. But why do some investors still need convincing of their merits? By David Turner with additional reporting from Andrew Hedlund and Andy Thomson

The Canadian pension has scaled up its credit operations in North America and Europe and is turning to China and India. John Graham, global head of credit investments, explains the strategy to Andy Thomson. Additional reporting by John Bakie and Andrew Hedlund

Closed-ended vehicles put fundraising pressure on managers and commitment pressure on investors, which is why many are eschewing traditional approaches in favour of more flexible, longer-term strategies.

Benign market conditions in recent years have hurt distressed debt performance figures. Should investors ditch the strategy or are the right market conditions just around the corner?