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☆ Private credit may offer high yields, but investors should tread carefully. What to know
▼ + stars: | 2024-02-29 | by ( Michelle Fox | ) www.cnbc.com time to read: +8 min

Private credit has become a hot investment on Wall Street as institutional investors seek out alternative investments with attractive dividends. "Investors might consider allocating a portion of their portfolio to private credit, depending on their individual risk tolerance, investment horizon and financial goals." Private credit funds have yields generally in the low-teens, although it can vary, he said. In a February report on U.S. life insurance ratings, Fitch Ratings said, "elevated private credit borrower leverage and a relative deterioration in private credit terms and conditions during more competitive lending environments are adding to pressures in the credit quality of private credit assets." The majority of the portfolio is in direct lending private credit, but a portion is also in publicly-traded securities of larger corporate issuers.

Persons: SoFi, Vivek Paul, Paul, Goldman, Greg Olafson, David Solomon, Fitch, Lisa Kwasnowski, Blackstone, Kwasnowski, Chuck Failla, it's, Failla, Oppenheimer, Mitchel Penn, Penn, Ares Capital, They've Organizations: Street, Franklin BSP Private Credit Fund, CNBC, Wall, BlackRock, Research, Management, UBS, Blackstone Private Credit Fund, Sovereign Financial Group, Securities and Exchange Commission, Owl, Golub, Ares, Sixth, SEC Locations: DBRS Morningstar's

☆ Big insurance companies want more private credit. Here's how Blackstone is using AI to win them over.
▼ + stars: | 2024-02-08 | by ( Bianca Chan | ) www.businessinsider.com time to read: +6 min

Insurance companies represent a big opportunity for private equity firms, who invest with the accumulated premiums paid by millions of everyday Americans. It's not just insurance clients that benefit from AI to bring more transparency to the cloudy private credit market. With private credit, insurance firms can invest in a more diversified set of assets with greater yield (and, albeit risk) than public credit markets, like vanilla corporate bonds. And because insurance companies often have long-term horizons with their financial obligations to policyholders, they can invest in less-liquid asset classes, like private credit. But to win more insurance clients, Blackstone must compete with the likes of Apollo Global Management, Carlyle, and KKR, which have also been keen on insurance.

Persons: Blackstone, John Stecher, it's, Stecher, Gilles Dellaert, Carlyle, that's, Jon Gray, Gray Organizations: Blackstone, —, Business, Insurance, Blackstone Insurance, Apollo Global Management, KKR Locations: BXCI

☆ Terry Gou: Foxconn founder drops out of Taiwan presidential race
▼ + stars: | 2023-11-24 | by ( Wayne Chang | Michelle Toh | ) edition.cnn.com time to read: +2 min

Taipei/Hong Kong CNN —Terry Gou, the billionaire founder of major Apple supplier Foxconn, withdrew from the race to become Taiwan’s next president on Friday, just hours before the deadline to formally register as a candidate. “I have never yielded in the battlefield of international business,” Gou said in a statement, without providing a specific reason for the retreat. “For the future of the Republic of China, choosing to yield is all the love I can give to my homeland,” Gou added, referencing Taiwan’s official name. Gou founded Foxconn, established as Hon Hai Precision Industry in Taiwan, in 1974. Shortly after he announced his bid, Chinese state media reported that Foxconn was under investigation by authorities in China over land use and tax concerns.

Persons: Hong Kong CNN — Terry Gou, Taiwan’s, “, ” Gou, Gou’s, Tammy Lai, ”, Hou Yu, Ko Wen, Gou, Foxconn, wouldn’t, Hai Organizations: Hong Kong CNN, Apple, Foxconn, ih, Kuomintang, Taiwan People’s Party, Democratic Progressive Party, Hai Precision Industry, Communist, CNN, for Public Credit Locations: Taipei, Hong Kong, Republic of China, Taiwan, China, Beijing, Wuhan

☆ IMF's Georgieva says debt restructuring process making progress
▼ + stars: | 2023-10-12 | by ( ) www.reuters.com time to read: +1 min

Managing Director of the International Monetary Fund (IMF), Kristalina Georgieva, addresses the media on the fourth day of the annual meeting of the IMF and the World Bank, following last month's deadly earthquake, in Marrakech, Morocco, October 12, 2023. REUTERS/Susana Vera Acquire Licensing RightsMARRAKECH, Morocco, Oct 12 (Reuters) - International Monetary Fund Managing Director Kristalina Georgieva on Thursday said consensus was growing in sovereign debt restructuring discussions on issues such as the comparability of treatment of private and public creditors. Georgieva told a news conference that the Group of 20 Common Framework for debt restructuring had been slow to deliver results, but it was encouraging that the time for dealing with individual country cases was now growing shorter. Throwing out the Common Framework would put the world in a "much less predictable environment," she said, adding creative approaches were also needed, including moves to better align debt restructuring with the climate crisis. Reporting by Andrea Shalal; Editing by Sharon SingletonOur Standards: The Thomson Reuters Trust Principles.

Persons: Kristalina, Susana Vera, Kristalina Georgieva, Georgieva, Andrea Shalal, Sharon Singleton Organizations: International Monetary Fund, IMF, World Bank, REUTERS, Rights, Monetary Fund, Thomson Locations: Marrakech, Morocco, Rights MARRAKECH

☆ Abu Dhabi's Mubadala commits $1 billion to Blue Owl Capital's credit platform
▼ + stars: | 2023-09-11 | by ( ) www.reuters.com time to read: +2 min

DUBAI, Sept 11 (Reuters) - Abu Dhabi state fund Mubadala Investment Company has committed $1 billion to U.S.-based Blue Owl Capital's credit platform under a strategic partnership announced by the two companies on Monday. The investment will initially focus on providing financing for technology companies, Mubadala and Blue Owl said in a statement. Blue Owl is an alternative investment manager with $150 billion in assets under management. Private credit funds are increasingly competing with banks, including for financing large company buyouts. I would advise that for the next maybe one year, the credit space would be an interesting space to deploy some investment," al-Mahmoud said at the time.

Persons: Fabrizio Bocciardi, QIA, Mansoor Ebrahim Al, Mahmoud, al, Hadeel Al Sayegh, Susan Fenton Organizations: Mubadala Investment Company, Asia Pacific, Qatar Investment Authority, Thomson Locations: DUBAI, Abu Dhabi, North America, Europe, Asia

☆ Deep strike drone attack on key Russian bomber highlights Ukraine's 'psychological' reach within Russia's own borders, experts say
▼ + stars: | 2023-08-22 | by ( Erin Snodgrass | ) www.businessinsider.com time to read: +5 min

A drone attack destroyed a Russian bomber at an airbase in the country over the weekend. A Ukrainian news outlet said agents working with Ukrainian intelligence were responsible. The supersonic bomber was likely destroyed in an attack over the weekend, the UK Ministry of Defense said in a Tuesday intelligence update. #BREAKING A flagship Russian long-range bomber has been destroyed in a Ukrainian drone strike. Ukrainian news outlet New Voice of Ukraine reported that agents operating with Ukrainian intelligence were responsible for the attack, claiming two additional aircraft were also destroyed in the strike.

Persons: UH9lym21Bu, Michael Bociurkiw, there's, Simon Miles, Vladimir Putin, Miles, Ben Hodges, Hodges Organizations: Ukraine, Service, UK Ministry of Defense, Tupolev, BBC, Duke University's Sanford School of Public, Soviet Union, Russian, New, US Army, Russia Locations: Russian, Ukrainian, Wall, Silicon, Russia, Ukraine, Soltsky, Novgorod, Tupolev, Soltsy, St Petersburg, The, Soviet, Kyiv, Mariupol

☆ ‘Virtuous Bankers’ Review: Accounting for a Nation
▼ + stars: | 2023-07-07 | by ( Adam Rowe | ) www.wsj.com time to read: 1 min

Interior view of the Bank of England by Joseph Michael Gandy. Photo: Sir John Soane's Museum/Bridgeman ImagesDuring the 18th century, the British Empire rose to global dominance by developing a new model of organized government, one that proved especially effective at converting the wealth of a free society into the power of a fiscal-military state. At the heart of this system was the Bank of England, “the grand Palladium of Public Credit,” as the Bank’s inspectors described it in 1784.

Persons: Joseph Michael Gandy, Sir John Soane's Organizations: Bank of England, Sir John Soane's Museum, Public Credit, ” Locations: British

☆ BlackRock moves from 'overweight' to 'neutral' on credit
▼ + stars: | 2023-05-22 | by ( ) www.reuters.com time to read: +1 min

[1/2] People are seen in front of a showroom that hosts BlackRock in Davos, Switzerland Januar 22, 2020. REUTERS/Arnd WiegmannMay 22 (Reuters) - BlackRock Investment Institute on Monday said it was moving from "overweight" to "neutral" on credit, saying yields are not enough to compensate investors for tightening credit conditions. In a research note, it also said it was moving from "underweight" to "neutral" on private markets following recent weakness in the U.S. regional banking industry. "The fallout from the banking sector troubles and further tightening of credit conditions adds to the pressure on public credit but could be a potential boon for private credit," the investment management company said. The BlackRock Investment Institute is an arm of U.S.-based investment firm BlackRock that provides proprietary investment research.

Since the start of the pandemic, Americans have been able to access free weekly credit reports. "Even when consumers are successful in having their complaint addressed, complaints call into question the underlying data contained in consumers' credit reports," the report read. Navigating the credit reporting system in the United States requires skill and often a good deal of patience. Democratic Rep. Maxine Waters of California, who chaired the panel at the time, said during the hearing that a public credit reporting agency "would be a major upgrade over today's broken, biased credit reporting system." Consumer advocates stress that not only should credit reports be easily accessible but that Americans should be able to scrutinize the information contained in credit reports.

Thomas Pallini/InsiderThe Capital One Venture X Rewards Credit Card offers Priority Pass Select airport lounge membership. But late last week, Capital One quietly updated the Priority Pass lounge access rules for the Capital One Venture X Rewards Credit Card. Now, instead of the Capital One Venture X Rewards Credit Card as the undisputed king of Priority Pass credit cards, your Priority Pass-conferring airport credit card will take a bit more deliberation. The Ritz Carlton Credit Card, while not publicly available, is still the best credit card for Priority Pass lounges because: It comes with a Priority Pass Select membership that gives you access to Priority Pass restaurants and non-lounge experiences. The Capital One Venture X Rewards Credit Card is the first Visa credit card to drop access to discounts at participating Priority Pass restaurants and other non-lounge experiences.

☆ Inside the private-debt boom: Wall Street's hottest asset faces a tremendous test in a dimming economy
▼ + stars: | 2022-12-05 | by ( Rebecca Ungarino | ) www.businessinsider.com time to read: +10 min

Defaults on private loans, which have fallen steadily since the pandemic's height in 2020, are ticking up. Private credit, or private debt, are catch-all terms to describe privately negotiated loans outside the public debt markets. Private credit firms engage in what's known as direct lending, making these private loans to companies who turn to them instead of a traditional bank. Analysts and asset management executives say private debt has held up well in 2022 in the face of brutal stock and bond market volatility. 'Fighting for allocation'A challenge for private debt funds in the past decade has been a dearth of companies they can lend to.

☆ China's 'social credit' system ranks citizens and punishes them with throttled internet speeds and flight bans if the Communist Party deems them untrustworthy
▼ + stars: | 2022-11-28 | by ( Katie Canales | Aaron Mok | ) www.businessinsider.com time to read: +10 min

Since China doesn't have a central social credit system, many local government agencies have been experimenting with what the system could look like. But the plan is for the social credit system to eventually be mandatory and unified across the nation, with each person given their own unique code used to measure their social credit score in real-time, per Wired. In fact, a national social credit system is currently being proposed. Companies will also be at risk if China passes on its Establishment of the Social Credit System law. Citizens with good social credit can also get discounts on energy bills, rent things without deposits, and get better interest rates at banks.

☆ $14 billion Schonfeld is launching a new credit unit as the hedge fund continues its growth tear
▼ + stars: | 2022-10-28 | by ( Alyson Velati | ) www.businessinsider.com time to read: +3 min

$14 billion Schonfeld Strategic Advisors has rolled out a credit unit within its new macro trading business that launched earlier this year. Silverman and Aubrey joined in July and August, respectively, following Anchorage shutting its $7.4 billion hedge fund last December. The expanding credit business is part of Schonfeld's recent growth tear. In January, the firm is rolling out long/short credit strategies across the credit quality spectrum in the US and plans to add APAC and EMEA strategies over time. The HFRI Asset Weighted Index gained 1.1% for September, increasing the year-to-date return to 3.8%, according to Hedge Fund Research data.

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