Direct Lenders Stay in Vogue
“Fierce competition among lenders has reduced yields and eroded investor protections in deals. Yet supporters of private debt are still willing to put money to work amid expectations it will withstand a downturn better than some other asset classes such as junk bonds because the loans are typically first in line for repayment if a company runs into trouble.
The appetite for direct lending continues to be strong,” said Brett Hickey. Particularly as investors worry more about the future economy, they like putting money into the safer part of the capital structure.”
Read the full article here.