Ani Yessaillian

Although the dust has not yet settled, we think it’s a good time to pause and consider the implications of the recent Silicon Valley Bank (SVB) collapse. Our view is that it could be a negative for small and middle-market borrowers and a positive for private credit. We believe this event will tighten the availability …

SVB Failure: The Impact on Private Credit Read More »

In our last QuickTake, “Not All Private Credit Is Created Equal,” we compared Asset-Based Lending and Cash Flow Lending. The purpose of the piece was to bring attention to the different underwriting features of these two lending styles and how they may perform in a difficult credit market. One exhibit in that piece caught the …

In Times of Crisis, Recovery Rates Matter a Lot Read More »

Since the global financial crisis, assets in private credit have grown exponentially as investors search for yield while protecting against inflation and rising interest rates. Once a small corner of the investment universe, private credit has boomed into a major asset class that does not appear to show signs of slowing. Over the 2010-2020 period, …

Not All Private Credit Is Created Equal Read More »

Markets have been buzzing about inflation in the post-COVID world. Significant kinks in supply chains, combined with worker shortages and sharply higher commodity prices, have caused a spike in inflation over the course of 2021 and into 2022, as evidenced by the core Personal Consumption Expenditure Deflator (“PCE”). Recent year-over-year readings of this, the Fed’s …

Optimize Your Fixed Income in an Inflationary World Read More »

Many of the brightest minds in finance have spent countless hours attempting to uncover the exact combination of key indicators to help predict returns in fixed income markets. Econometric approaches to forecast inflation and credit conditions are often highly complex, all to generate a few fractions of one percent of edge in the market. While …

In the Land of Fixed Income, We Believe Yield Is King Read More »