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We continue a conversation begun last week with reflections on why the private debt secondaries market may struggle to establish itself.
Private debt is behind other alternative asset classes when it comes to secondary activity and opinions differ as to when it’s worth taking seriously.
A regulator’s report appears to confirm that fears about collateralised loan obligations were merited. Those involved in the market, however, are looking forward to a fruitful year.
The restricted payments covenant has changed unrecognisably as borrowers seek more room for manoeuvre in a downturn.
Writing a cheque
Strong institutional demand for more risk plays into the hands of non-bank property lenders.
The purchase of the Asian lender jump-starts Ares Management’s operations in the region, where many of its peers already have devoted resources.
Although private debt capital raising continued to decline last year, investors are far from abandoning the asset class.
Unable to force deal sponsors to the table in times of stress, lenders find themselves effectively handcuffed. No wonder the covenant-lite loan remains one of the asset class’s big talking points.
PDI’s private debt prognosticators take a crack at predicting several of the big themes that will be front of mind next year.
Private debt
The credit fund secondaries market could be huge. The question is ‘when?’

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