Economy

The safety and stability of European senior credit is proving attractive for investors and borrowers alike, as economic conditions become more difficult.

As banks sell US consumer loans and insurers bid up prices, private credit managers are split between leaning in, staying underweight and waiting for distress.

But revenue plunged 52% and earnings swung to a loss as higher interest rates weighed on its retirement services business.

The deal is being led by Carlyle’s ABF team, which manages roughly $12.1bn in assets.

Arini Capital Management’s Nabil Aquedim and Stan Fedorenko discuss the rapidly growing investment opportunity in offering flexible, tailored capital to fundamentally sound borrowers stuck with low interest rate-era structures.

There have been some challenging headlines this year, but Michael Ewald, a partner and global head of the private credit group at Bain Capital, is optimistic about the asset class’s prospects.

The firm’s bet on financing AI and its focus on investment-grade and ABF helped pick up the slack, however.

The sale of super prime and prime loans will net Truist $7.2bn in proceeds, a 6.5% discount.

In an environment of lower growth, investors may seek out illiquid assets for their return and diversification potential, according to AllianceBernstein’s chief investment strategist.

Goldman Sachs survey results and webinar look to generational differences and to resilience.