Robocash Investment Robot’s Post

Quote Private credit segments forecast to be growth areas include: The longer-term trend of extending credit to high-quality growth companies; Junior capital and hybrid (i.e. unitranche) deals (if interest rates remain higher for longer); Rescue financing (if ‘higher for longer’10 interest rates cause a recession and higher defaults); and ETFs. As highlighted by Deutsche Bank’s Flannick, these will “unlock access to a relatively untapped market (the retail investor) as well as possibly mitigating some of the liquidity challenges associated with retail BDCs”. He explains that ETFs “may enable large asset managers to sidestep some of the potential liquidity challenges that BDCs face during periods of market dislocation due to the larger retail investor adoption of the ETF vehicle and the likelihood of trading to continue even during periods of market stress”. Unquote

Good momentum on US corporate bond market continues...

The global credit cycle is a perpetual force, influencing interest rates, credit availability and capital markets pricing. For core plus fixed income managers looking to balance quality and liquidity versus risk, correctly identifying the drivers of a cycle can be a challenge but can also create opportunity. Learn more in our paper: https://lnkd.in/eiPCi6uE #CorePlus #FixedIncome

The growth was fuelled by equity capital markets growing to US$108.7 million, a 42% increase, matched by a similar surge in debt capital markets fees, which also climbed 42% to US$106.4 million.

European P2P market could grow by 4.4pc next year #alternativecreditinvestor #alternativecredit #altcredit #finance #lending #investment #privatecredit #privatedebt #EuropeanP2P #P2P https://lnkd.in/dmHgZ8hd

The private credit market is experiencing a wave of consolidation, indicating that it may be reaching a peak. Traditional asset managers and private equity firms are acquiring providers of non-bank loans to capitalize on this rapidly growing segment. This trend suggests a highly competitive environment as firms seek to secure their positions in the market, as reported by the Financial Times.

The multi-sector category is offering attractive yields in the mid-to-high single digits, and we believe a multi-sector approach may offer better access to the wide array of opportunities available in fixed income markets #InvestingInvolvesRisk

We need to rethink the entire lending model across the emerging markets. Most originations begin with collateral valuation. Liquidation of security as a primary way out gets more weightage than cashflows from operations. Credit due diligence starts with inherent lack of faith in full financial disclosures. In default, Lenders have no easy way to replace the management or take control of the Board. Sectors that drive most of these economies, like SMEs and Agri, lack access to capital. Unless they get growth capital, these entities will continue to stifle and never reach their full potential.

According to MSCI, in the first half of 2024, CMBS lending activity experienced a significant uptick, soaring over 300% and increasing its market share to 9%. Concurrently, the market share of investor-driven lenders grew from 9% in 2023 to 14% in the first half of 2024.   Key Takeaway: The landscape for lending options is rapidly improving, offering investors more options. #multifamily #capitalmarkets

Asset managers are receiving a rush of requests for proposals from potential clients, largely pension funds, which are considering allocating more capital to emerging market debt, potentially heralding a major reversal in fortunes for the asset class after EM fixed-income funds suffered heavy outflows in 2023 and the first half of this year. One fund manager said that his team had participated in as many EM debt RFPs this year as they did during all of 2023. The RFPs are yet to feed through into fund flows, however. Hopes are that they start to emerge later this year or early next. And EM debt could do with this boost as data from EPFR Global and Bank of America show the asset class has experienced net outflows of more than US$9.2bn in 2024. Why are more investors considering allocating to EM debt? Well for that, all you have to do is go here: RFP bonanza raises hopes of EM inflows | IFR (ifre.com) #corporatecredit #corporatefinance #bonds #debt #debtcapitalmarkets #Eurobonds #CEEMEA #emergingmarkets