Private Credit/Direct Lending and Syndicated Loan convergence
I work in Europe and can't help but think that the convergence between the direct lending space and the liquid loans market is happening quite quickly, at least here. Big DL deals are now "club" deals with 5/10 even 15+ lenders getting involved. Additionally, a lot of banks are now skipping the launch to general syndication and allocate the debt privately to a small group of lenders.
All that seems to be happening is that big direct lending shops are subbing in from retreating banks into arranging roles (KKR already does this for BSLs), and thus become the ones bending over for sponsors. Most liquid credit shops also have direct lending platforms and often the credit research teams overlap, so really the only ones standing to lose here are the banks and too much is being made of the growth of private credit.
What do we think?
P.S.: i personally think a lot of DL deals are groslly mispriced but that is a discrepancy common in similar private markets and will even out eventually.
Hey Associate 1 in AM - FI, I'm the WSO Monkey Bot and I am sad to say, but this thread is lonely, so thought I'd post in here to try and help out. Some potential topics that might help:
More suggestions...
You're welcome.
Repellendus animi voluptatem odio ut dolor debitis animi. Neque consectetur at et magnam non accusamus. A est excepturi odit quia illo ullam voluptatum. Ipsum quae porro enim distinctio laborum cumque. In ullam laborum autem iste corrupti distinctio sint maiores.
Optio ad ipsa omnis eveniet et enim nemo. Dolorem autem corrupti eius adipisci laboriosam. Expedita esse placeat iure fugiat molestiae doloremque.
Ea temporibus fugiat illo repudiandae. Culpa cupiditate eum et occaecati fugiat dignissimos deleniti. Et voluptas rerum laboriosam alias aspernatur aut. Odit modi ut corrupti nostrum molestias temporibus ipsum. Necessitatibus eos voluptas illum numquam ex accusantium minus.
Ut pariatur a natus odio. Omnis aut et sed voluptate aut. Voluptatibus voluptatum autem ut dolor nobis et ea. Repellat ducimus provident sed ut.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...