Alternative credit
Not all private credit is created equal: what to consider in an uncertain environment
Private credit continues to take market share in debt capital markets, though questions over its durability persist. In the current market environment, media and some research outlets are raising concerns about the risks a period of sustained high-interest rates may pose. Are private credit valuations supportable, or will they crash and contaminate the financial system leading to another financial crisis?
Randy Schwimmer, Vice Chairman, Investor Solutions at Churchill, deep dives into why not all private credit is created equal and, in the face of economic uncertainty, a disciplined approach to selecting borrowers is necessary to provide value to investors.
Related articles
We invest across the alternative credit spectrum to add diversification, resilience to market swings, and cashflow driven return profiles to portfolios.
In a recent Q&A interview with Private Debt Investor, Churchill Asset Management’s Jason Strife and Mat Linett discuss why platform deal volumes may still be down while portfolio-based activity is keeping lenders busy.
In the post-Great Moderation world, institutional investors are facing a radically new environment.
