In the last two years, private credit has blossomed, along with the Federal Reserve’s rate hikes and banks’ retreat from risky lending. But as conditions for its outsize success unwind and the broadly syndicated loan market reopens, non-traditional lenders are looking for a second act.

Asset-based finance is the new catch phrase. This type of lending is supported by cash flows from, say, credit card receivables or aircraft leasing, and is historically the domain of banks. Currently, private credit manages about $1.7 trillion. But the universe will be much broader if we include ABF, which KKR & Co. Inc. estimates to be about $5.2 trillion.

QOSHE - Private Credit’s Second Act Raises Some Eyebrows - Shuli Ren
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Private Credit’s Second Act Raises Some Eyebrows

6 0
20.03.2024

In the last two years, private credit has blossomed, along with the Federal Reserve’s rate hikes and banks’ retreat from risky lending. But as conditions for its........

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