VPC - Private Credit Outlook: The Bright Side Of Higher Rates
2024-04-04 13:45:00 ET
Summary
- Stubbornly high borrowing costs and sticky inflation will put pressure on cash flow stability and on some asset valuations.
- Persistent stress among small and mid-sized banks who must comply with changing regulations and funding needs should broaden the investment opportunity set for private lenders and enhance return potential.
- We consider this good news for experienced lenders with the ability to source, underwrite and manage credit risk throughout the economic cycle.
By Matthew D. Bass
More clarity on interest rates means more clarity on the investment outlook and the opportunities across private markets. ...
Private Credit Outlook: The Bright Side Of Higher Rates