Private credit

Loans made by funds rather than banks or markets: larger, less liquid, with thinner coverage and lower recoveries.

• Credit

1 idea that carry it

• ObservationCreditResearch

  Private credit lends larger, with thinner coverage and lower recoveries

  Private credit's borrowers are more levered and its recoveries lower than the syndicated market's, and the capital waiting to be deployed is what pressures underwriting.

  Credit fund, leveraged finance and private equity interviews, and any discussion of where the risks in private credit sit.

  From Private Credit: Characteristics and Risks · Fang Cai and Sharjil Haque, Board of Governors of the Federal Reserve System (FEDS Notes)