This week in our continuing special series on the private credit myths, we come to:
Myth #3: “We’re late in the cycle, so loans now are risky.”
Let’s first take the issuer side of the equation. One of the virtues of private credit is being available when public markets are shut or expensive. Invariably those times coincide with periods of uncertain price discovery. Buy-and-hold private credit managers have locked-in capacity. Since the assets are not liquid, transactions can be structured with long hold periods and without relying a market take-out...
