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Fears over a recession mean that banks are increasingly looking to shift their performing and non-performing loans off their books. They need a strong counterparty to do so, says Paul Burdell, co-founder and chief executive at LCM Partners

Market dislocation promises to produce a rich seam of opportunities for investors adopting more flexible capital solutions for portfolio companies, say Goldman Sachs partners Stephanie Rader, Beat Cabiallavetta and Moritz Jobke

Investors continue to enjoy a strong debt market, with newer transactions potentially offering lower leverage and increased returns, say Barings’ Adam Wheeler and Mark Flessner.

Despite macroeconomic headwinds and the rising cost of capital, transaction activity looks set to pick up in the second half of 2023, says Sarah Roche, head of capital markets and managing director at Twin Brook Capital Partners.

The strategy is looking favourable compared with global equities and credits, says Eddie Ong, deputy chief investment officer at SeaTown Holdings International.

Opportunities persist for those investors able to be flexible in a changing environment. Camille McLeod-Salmon, portfolio manager in leveraged finance at Fidelity International, runs the rule over current market dynamics.

Despite the macro pressures, these are the best of times for those prepared to be selective and understand where the best deals reside, says Zach Lewy, CEO, CIO of Arrow Global.

Private credit has served the mid-market for years, but now the sector is expanding into larger transactions with great success, explains Lee Kruter, partner and head of performing credit of GoldenTree Asset Management.

Demand is growing at both ends of the risk spectrum, says Andrew Lockhart, managing partner at Metrics Credit Partners.

With an approach based around asset backing, Schroders Capital offers expertise that allows for the blurring of lines between public and private debt markets to capture opportunity, explains Michelle Russell-Dowe.