Opinion

A Moody’s report and a Lombard Odier white paper offer different visions of risk and opportunity for lenders in the sustainability space.

Private debt has found another area of financing where traditional players are struggling to maintain their dominance.

Uncertainty about the use of proceeds poses an issue for NAV lenders looking to manage ESG risks.

A larger and more diverse universe of opportunity for distressed debt and opportunistic credit is unfolding. There are a number of reasons why.

Pressures on banks and the high-yield market, especially in China, mean private debt funds can expand through the provision of flexible capital.

In some areas they co-operate but, in others, competition is increasing. Traditional and alternative lenders walk a fine line between friendship and enmity.

Given the shock of the new rate environment, some borrowers will experience problems, according to Howard Marks. He thinks talk of systemic risk is exaggerated though.

As the Middle East grows in significance as a source of capital, and travel continues its post-covid revival, Asia-based GPs are hoping they can find backing for the region’s big investment themes.

Europe is now more closely aligned with a regulatory approach that has underpinned the growth of the US market, writes the global head of the Alternative Credit Council.

AIFMD II lays down some practical challenges for private debt fund managers. There may be a lot more of this type of intervention in future.